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THE OPTIMAL DISTANCE TO PORT FOR EXPORTING FIRMS *
Author(s) -
Gries Thomas,
Naudé Wim,
Matthee Marianne
Publication year - 2009
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.2008.00599.x
Subject(s) - port (circuit theory) , geographical distance , contrast (vision) , focus (optics) , economic geography , empirical evidence , distance decay , empirical research , economics , international trade , bilateral trade , market size , industrial organization , business , econometrics , international economics , computer science , geography , sociology , mathematics , engineering , statistics , population , philosophy , artificial intelligence , archaeology , optics , physics , demography , electrical engineering , epistemology , china
Success in international trade depends, among 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 behavior 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 in support of the model.