Research Catalog

Title

Have Developed Countries Escaped the Curse of Distance? [electronic resource] / Hervé Boulhol and Alain de Serres

Author

Boulhol, Hervé.

Publication

Paris : OECD Publishing, 2008.

Details

Additional Authors

de Serres, Alain.

Description

30 p.; 21 x 29.7cm.

Summary

There is widespread evidence that a better access to markets contributes to raising income levels. However, no quantification of the impact of distance to markets has been made on the basis of a sample restricted to advanced — and therefore more homogeneous — countries. This paper applies the framework developed by Redding and Venables (2004) on a panel data covering 21 OECD countries over 1970-2004, and shows that, relative to the average OECD country, the cost of remoteness for countries such as Australia and New Zealand could be as high as 10% of GDP. Conversely, the benefit for centrally-located countries like Belgium and the Netherlands could be around 6-7%. Second, the paper explains why the key estimated parameter in the Redding-Venables model is biased upwards in cross-section samples that mix both developing and developed countries, because of the inability to adequately control for heterogeneity in technology levels across countries. The paper also provides a detailed discussion of the links between the ?death-of-distance? hypothesis, the evolution of transport costs and that of the elasticity of trade to distance.

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.610

Uniform Title

OECD Economics Department Working Papers, no.610.

Subject

Economics

LCCN

10.1787/241705110254

OCLC

oecd-lib-003804

Author

Boulhol, Hervé.

Title

Have Developed Countries Escaped the Curse of Distance? [electronic resource] / Hervé Boulhol and Alain de Serres

Imprint

Paris : OECD Publishing, 2008.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.610

OECD Economics Department Working Papers, 1815-1973 ; no.610.

Connect to:

http://dx.doi.org/10.1787/241705110254

Indexed Term

Economics

Added Author

de Serres, Alain.

Other Standard Identifier

10.1787/241705110254 doi