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dc.contributor.authorLawless, Martinaen_US
dc.contributor.authorWhelan, Karlen_US
dc.date.accessioned2010-12-16T13:35:56Z-
dc.date.available2010-12-16T13:35:56Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/43366-
dc.description.abstractOne of the most famous and robust findings in international economics is that distance has a strong negative effect on trade. Bernard, Jensen, Redding, and Schott (2007) discuss how this can be decomposed into an effect due to the number of products and an effect due to average exports per product. Using US firm-level data, they show that distance has a strong negative effect on the number of products exported. However, they find that the intensive margin-average sales of individual products-is increasing with distance. We show that this apparently puzzling finding is consistent with models featuring firm heterogeneity in productivity and fixed costs associated with exporting to each market. We also show how evidence of this type can be used to derive new estimates of how distance affects fixed and variable trade costs and how these two costs combine to generate the distance effect on trade.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesWorking paper series // UCD Centre for Economic Research 2007/16en_US
dc.subject.ddc330en_US
dc.subject.stwRäumliche Verteilungen_US
dc.subject.stwTransaktionskostenen_US
dc.subject.stwGravitationsmodellen_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwUSAen_US
dc.titleA note on trade costs and distanceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn557447690en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Paper Series, UCD School of Economics, University College Dublin (UCD)

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