Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74894
Authors: 
Olper, Alessandro
Raimondi, Valentina
Year of Publication: 
2007
Series/Report no.: 
LICOS Discussion Paper 188
Abstract: 
This paper documents patterns in international trade costs in processed foods for a large cross-section of developing and developed countries, during the 1976-2000 period. A trade costs index is inferred from a micro-founded gravity equation that incorporates bilateral `iceberg?trade costs. For 2000, the weighted average tariff equivalent of trade costs ranges from 73% for the North to 134% for the South countries. The time patterns show an average reduction of about -13% in the observed period, that rises to -26% for the Emerging countries. However, the same does not apply for South countries. On ranking the trade costs detfirminants we find that, on average, geographical and historical factors seem to dominate those of infrastructure and institutions. However, trade policy emerges as an important detfirminant of the North-Emerging trade costs. Finally we find strong evidence that demand-side considerations also matter to explain trade costs.
Subjects: 
Trade costs
Gravity
Processed Foods
Geography
Infrastructure
Trade Policy
Inequality
JEL: 
F1
F13
F14
Document Type: 
Working Paper

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