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The Optimal Distance to Port for Exporting Firms

Success in international trade depends, amongst other things, on distance from markets. Most new economic geography models focus on the distance between countries. In contrast much less theorizing and empirical analysis have focused on how distances within a country—for instance due to the location behaviour of exporting firms—matter to international trade. In this paper we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an export-oriented firm would locate from a port. We present empirical evidence from South Africa in support of the model.
Publisher:
UNU-WIDER
Series:
WIDER Research Paper
Volume:
2008/32
Title:
The Optimal Distance to Port for Exporting Firms
Authors:
Thomas Gries, Wim Naudé, and Marianne Matthee
Publication date:
April 2008
ISSN Web:
1810-2611
ISBN 13 Web:
9789292300784
Copyright holder:
© UNU-WIDER
Copyright year:
2008
Keywords:
distance, transport costs, manufactured exports
JEL:
R0, R4, F14
Project:
Promoting Entrepreneurial Capacity
Sponsor:
The governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Norway (Royal Ministry of Foreign Affairs), Sweden (Swedish International Development Cooperation Agency — Sida) and the United Kingdom (Department for International Development).
Format:
online