Fly the unfriendly skies: The role of transport costs in gravity models of trade

• 成果类型: Article
• 署名作者: Besedes, Tibor; Chu, Jing; Murshid, Antu Panini
• 署名单位: University System of Georgia; Georgia Institute of Technology; University of Wisconsin System; University of Wisconsin Milwaukee
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2024.103994
• 发表日期: 2024
• 关键词: Air cargo; Distance data; Geographic information systems; gravity model; natural experiment; Transportation costs

摘要

We exploit exogenous shocks to flight distances over time to estimate the distance effect in airborne trade within panel regressions. We find a negative distance effect, which we interpret as evidence of a link between transportation costs and airborne trade. Notably, this relationship is driven almost entirely by changes at the extensive margin. Specifically, trade in HS 6 product categories with intermittent trading histories becomes dormant when flight distances increase. Conversely, the intensive margin of trade remains largely unaffected.