Journal article
The agglomeration of exporters by destination
The Annals of regional science, Vol.51(2), pp.495-513
10/2013
Handle:
https://hdl.handle.net/2376/112845
Abstract
Precise characterization of informational trade barriers is neither well documented nor understood. Using Russian customs data, we document that regional destination-specific export spillovers exist for developing countries, extending a result that was only known for developed countries. This result suggests behavior responding to a destination barrier. To account for this fact, we build on a monopolistic competition model of trade by postulating an externality in the international transaction of goods. We test the model’s prediction on region-level exports using Russian data and find improvement over gravity-type models without agglomeration. This finding has important development implications in that export policy that considers current trade partners may be more effective than policy that focuses only on the exporting country’s industries. Furthermore, our findings can be considered in the burgeoning literature refining transaction costs beyond the traditional iceberg cost.
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Details
- Title
- The agglomeration of exporters by destination
- Creators
- Andrew Cassey - School of Economic Sciences Washington State University 101 Hulbert Hall P.O. Box 646210 Pullman WA 99164 USAKatherine Schmeiser - Department of Economics Mt. Holyoke College 117 Skinner Hall, 50 College St South Hadley MA 01075 USA
- Publication Details
- The Annals of regional science, Vol.51(2), pp.495-513
- Academic Unit
- UNKNOWN
- Publisher
- Springer Berlin Heidelberg; Berlin/Heidelberg
- Identifiers
- 99900547701501842
- Language
- English
- Resource Type
- Journal article