Polytechnic University of Valencia Congress, 1st International Conference on Business Management

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Factors determining the trade costs of major european exporters
Rosa Puertas, Maria Luisa Martí Selva

Last modified: 21-07-2015


The aim of this paper is to analyse the factors determining trade costs in the top European exporting nations. We have estimated an explanatory equation for trade costs to determine the importance of logistical performance and other variables that may be key to determining the cost of trade. The results reveal the substantial importance of logistics in determining trade costs, which exceeds that of distance. The results also indicate that logistics are more relevant in those countries where costs are lower. This analysis allows establishing conclusions about what type of improvements will lead to cost reductions and, therefore, to greater international competitiveness. It has been conducted for two years, also facilitating the detection of possible changes that can in turn reveal the existence of a behaviour pattern in these countries.


DOI: http://dx.doi.org/10.4995/ICBM.2015.1253


Applied economics

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