Midlands State University Library

The relative importance of distance in restricting international trade

YANG, Xuebing

The relative importance of distance in restricting international trade - Applied Economics Letters Volume , number , .

Based on a general setup, this article shows that distance consistently accounts for about 40% of the international trade costs over the years for both developed and developing countries if we assume that trade costs take the iceberg form. The result helps us have a clear perspective of the relative importance of distance in restricting international trade.


gravity model
international trade
trade barriers