Big is Beautiful when Exporting

Forslid, Rikard; Okubo, Toshihiro

doi:10.1111/roie.12215

Cited by 10 publications

(5 citation statements)

References 26 publications

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“…Forslid and Okubo (2015, 2016) [25,26] adopted another formalization of trade cost that copes directly with the introduction of economies of scale. Although it focuses on the iceberg shipping method, previous work has defined shipping costs based on productive competence.…”

Section: Literature Review 21 Research On the Iceberg Transport Cost ...mentioning

confidence: 99%

Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model

2022

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This paper investigates the economic relationship between logistics performance and export competitiveness based on the iceberg transport cost model and conducts further empirical analysis according to China’s LPI. It finds that the higher the efficiency of logistics and transport, the lower the transportation costs coefficient per unit distance; when logistics and transportation costs decrease, foreign demand for domestic goods increases, as does the export value expressed in domestic prices. Additionally, Spearman’s rank correlation method is used to analyze the relationship between logistics performance index and export level, indicating that logistics performance index has a positive rank correlation with the export level at a significant level of 1%. Moreover, a case study on China’ LPI supports the conclusion derived from the theoretical analysis, and conducive countermeasures are put forward. This research confirms the positive correlation between logistics performance and export competitiveness and proposes specific solutions to enhancing the logistics capabilities of other developing countries.

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Section: Literature Review 21 Research On the Iceberg Transport Cost ...mentioning

confidence: 99%

Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model

2022

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“…Another alternative trade costs formalization that deals with the direct introduction of scale economies is employed by Forslid and Okubo (2015, 2016). Although it maintains the iceberg transport approach as its core, the earlier work defines the transportation costs as a function of the productivity levels.…”

Section: Iceberg Transport Costs In the Literature: A Reviewmentioning

confidence: 99%

Transport costs in new economic geography models: A more realistic approach

Puente‐Ajovín

Sanz‐Gracia

2019

Int J of Economic Theory

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This paper proposes an alternative method to the iceberg approach for modeling transport costs. Instead of part of the good evaporating in transit, we take as our basis the idea that certain workers in companies are in productive occupations in the strict sense, and others work in transport. This simple change is found to be capable of overcoming most of the criticisms associated with the iceberg approach.

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“…These papers provide very useful insights into shipment frequency issues, and so does the purely empirical paper Hornok and Koren (2015b). Note also that economies of scale in shipping were studied by Anderson et al (2014) and Forslid and Okubo (2016), but those approaches were not based on shipping frequency and in the former case involved external (i.e., not within-firm) economies of scale.…”

Section: Computational Considerationsmentioning

confidence: 99%

Functional Forms for Tractable Economic Models and the Cost Structure of International Trade

Fabinger¹,

Weyl²

2016

Preprint

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We present functional forms allowing a broader range of analytic solutions to common economic equilibrium problems. These can increase the realism of pen-and-paper solutions or speed large-scale numerical solutions as computational subroutines. We use the latter approach to build a tractable heterogeneous firm model of international trade accommodating economies of scale in export and diseconomies of scale in production, providing a natural, unified solution to several puzzles concerning trade costs. We briefly highlight applications in a range of other fields. Our method of generating analytic solutions is a discrete approximation to a logarithmically modified Laplace transform of equilibrium conditions. * This paper replaces its previous working versions "Pass-Through and Demand Forms"/"A Tractable Approach to Pass-Through Patterns"/"The Average-Marginal Relationship and Tractable Equilibrium Forms". We are grateful to many colleagues and seminar participants for helpful comments. We appreciate the research assistance of Konstantin

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Big is Beautiful when Exporting

Cited by 10 publications

References 26 publications

Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model

Does Cross-Border Logistics Performance Contribute to Export Competitiveness? Evidence from China Based on the Iceberg Transport Cost Model

Transport costs in new economic geography models: A more realistic approach

Functional Forms for Tractable Economic Models and the Cost Structure of International Trade

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