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Export costs of visa restrictions

Author

Listed:
  • Natalia Kapelko

    (New Economic School)

  • Natalya Volchkova

    (New Economic School)

Abstract

The paper studies the role visa restrictions play in determining export flows between Russian firms and their partners and explores the mechanism of this relationship. The specification of empirical model is derived from a heterogeneous firms’ model of trade. The existing visa restrictions are used as proxies for the costs the exporters incur while dealing with customers abroad. The results indicate that visas have a negative market access effect. Controlling for the choice of destination, visas have a significant negative effect on the value of relationship-specific exports as well. These results are consistent with informational and contractual nature of visa costs.

Suggested Citation

  • Natalia Kapelko & Natalya Volchkova, 2013. "Export costs of visa restrictions," Working Papers w0195, Center for Economic and Financial Research (CEFIR).
    • Handle: RePEc:cfr:cefirw:w0195
    as

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    File URL: http://www.cefir.ru/papers/WP195.pdf
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    References listed on IDEAS

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    Cited by:

    1. Magnus Lodefalk, 2016. "Temporary expats for exports: micro-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 733-772, November.
    2. Kuznetsova Maria, 2016. "Spatial structure and economic network formation of manufacturing exports in Russia," EERC Working Paper Series 16/08e, EERC Research Network, Russia and CIS.

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    More about this item

    Keywords

    Heterogeneous firms; exports; visa restrictions; market access costs; extensive and intensive margins of trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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