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Iceberg Trade Cost Measures: An Application to the OECD Area over 1988-2010

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  • Javad Abedini

Abstract

This study suggests an augmented trade cost function, with correction for nonstationarity, and applies it to estimate bilateral iceberg trade costs of OECD countries during 1988-2010. We show that trade costs have not been reduced during recent decades, but also exhibit an upward trend in geographical, institutional, and cultural components. Our findings also indicate that bilateral and multilateral trade resistances are asymmetrically distributed across the OECD area, particularly for intra-continent trade and for trade between countries at different levels of economic development. A convergence process is, however, detected between developed and developing countries.

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  • Javad Abedini, 2015. "Iceberg Trade Cost Measures: An Application to the OECD Area over 1988-2010," The International Trade Journal, Taylor & Francis Journals, vol. 29(2), pages 115-141, June.
    • Handle: RePEc:taf:uitjxx:v:29:y:2015:i:2:p:115-141
    DOI: 10.1080/08853908.2014.990071
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    References listed on IDEAS

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    1. Helpman, Elhanan, 1987. "Imperfect competition and international trade : Opening remarks," European Economic Review, Elsevier, vol. 31(1-2), pages 77-81.
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    3. Beltramo, Theresa, 2010. "Changes in Bilateral Trade Costs between European Union Member States & Major Trading Partners: An Empirical Analysis from 1989 - 2006," MPRA Paper 24259, University Library of Munich, Germany.
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    Cited by:

    1. Dezhong Duan & Qifan Xia, 2022. "From the United States to China? A trade perspective to reveal the structure and dynamics of global electronic‐telecommunications," Growth and Change, Wiley Blackwell, vol. 53(2), pages 823-847, June.

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