TERMIUM Plus®

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EFFECT DISTANCE [1 record]

Record 1 2007-06-14

English

Subject field(s)
  • Econometrics
  • Foreign Trade
CONT

Distance is still an important source of trade costs and continues to have an irrevocable impact on the patterns of international trade ... various factors ... can explain the importance of geographical proximity for bilateral trade. First, transport costs and costs of timeliness increase with distance. Moreover, psychic distance increases as well. Because of cultural unfamiliarity and information costs, traders have less knowledge of distant markets.

CONT

If transportation costs are the main source of distance effects on trade and wages, we can expect that in some service sectors, distance effects may indeed be eliminated with globalization.

CONT

There is no shortage of estimates of the effect of distance on trade flows. A huge number of papers have examined the determinants of bilateral trade flows and they almost invariably control for distance. Despite the abundance of such studies, assessments of the distance effect tend to be anecdotal.

French

Domaine(s)
  • Économétrie
  • Commerce extérieur
CONT

Si les coûts de transport sont la source principale des effets de distance sur le commerce et les salaires, alors nous pouvons nous attendre à ce que les effets de distance, dans certains secteurs des services, soient éliminés par la mondialisation.

Spanish

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