Exports and International Logistics* |
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Authors: | Alberto Behar Philip Manners Benjamin D Nelson |
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Institution: | 1. International Monetary Fund, 700 19th Street, Washington, DC 20431, USA (email: abehar@imf.org);2. The Centre for International Economics, GPO Box 397, Sydney 2001, Australia (email: pmanners@thecie.com.au);3. Bank of England, Threadneedle Street, EC2R 8AH London, UK (email: benjamin.nelson@bankofengland.co.uk) |
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Abstract: | Better international logistics raise a developing country's exports, but the magnitude of the effect depends on the country's size. We apply a gravity model that accounts for firm heterogeneity and multilateral resistance to an international logistics index. A one standard deviation improvement in logistics is equivalent to a 14% reduction in distance. An average‐sized developing country would raise exports by approximately 36%. Most of the countries are much smaller than average, so the typical effect is 8%. This difference is chiefly due to the dampening effect of multilateral resistance, which is more important for small countries. |
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Keywords: | F10 F13 F14 F17 O24 |
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