Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America
The paper identifies the impact of physical barriers to trade within Central America through the use of an augmented and partially constrained Gravity Model of Trade. Adjusting the Euclidian distance factor for Central America by real average trans...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101214085824 http://hdl.handle.net/10986/3990 |
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okr-10986-3990 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ADVERSE EFFECTS AGRICULTURAL PRODUCTS AGRICULTURE AIR ARTERIES BANANAS BARRIERS TO TRADE BENCHMARK BENCHMARKS BENEFITS OF TRADE BENEFITS OF TRADE FACILITATION BEVERAGES BILATERAL TRADE BORDER CROSSING BORDER CROSSINGS BORDER TRADE BOTTLENECKS CA CANE SUGAR CASTINGS CEREAL PRODUCTS CIGARS COMPARATIVE ADVANTAGE COMPETITIVENESS CONGESTION CORN CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS CLEARANCE CUSTOMS PROCEDURES DEVELOPMENT POLICY DRIVERS ECONOMIC COOPERATION ECONOMIC OUTLOOK ECONOMIC POLICY ECONOMIC RESEARCH ECONOMICS ELASTICITIES ELASTICITY EXOGENOUS VARIABLES EXPORT BASKET EXPORT BASKETS EXPORT DIVERSIFICATION EXPORT MARKETS EXPORT PROCEDURES EXPORT STRUCTURES EXPORT VALUE EXPORTERS EXPORTS EXTERNAL TRADE FOOD EXPORTS FOOD IMPORTS FOOD PRICES FOREIGN MARKETS FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE ZONES FREIGHT FRUIT FRUITS FUELS GDP GDP PER CAPITA GRAINS GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS GROSS DOMESTIC PRODUCT GROWTH RATE HAZARD IMPERFECT COMPETITION IMPORT MARKETS INTERNATIONAL TRADE INTRAREGIONAL TRADE MAIZE MARKET SIZE MARKET SIZE EFFECTS METAL PRODUCTS OPENNESS OPTIMIZATION PACKAGING PALM OIL PATTERNS OF TRADE POSITIVE EFFECTS PROCESSED FOODS PRODUCTIVITY GROWTH RAIL RAIL SERVICES RAILWAY REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE INTEGRATION RICE ROAD ROAD CONDITIONS ROAD HAULAGE ROAD QUALITY ROADS ROUTE ROUTES RUBBER SEAFOOD SPEEDS STEEL STEEL BARS STEEL PRODUCTS STRUCTURAL CHANGE TARIFF BARRIERS TECHNOLOGY TRANSFER TRADE AGREEMENT TRADE BARRIERS TRADE DETERMINANTS TRADE FACILITATION TRADE FLOWS TRADE IMPEDIMENTS TRADE LIBERALIZATION TRADE MODEL TRADE MORE TRADE OPENNESS TRADE PARTNERS TRADE PATTERNS TRADE PERFORMANCE TRADE VARIABLES TRADE VOLUMES TRADE ZONE TRADING PATTERNS TRAFFIC TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODES TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION SERVICES TUBES VEGETABLE OILS VEGETABLES VITAMINS WAXES WHEAT |
| spellingShingle |
ADVERSE EFFECTS AGRICULTURAL PRODUCTS AGRICULTURE AIR ARTERIES BANANAS BARRIERS TO TRADE BENCHMARK BENCHMARKS BENEFITS OF TRADE BENEFITS OF TRADE FACILITATION BEVERAGES BILATERAL TRADE BORDER CROSSING BORDER CROSSINGS BORDER TRADE BOTTLENECKS CA CANE SUGAR CASTINGS CEREAL PRODUCTS CIGARS COMPARATIVE ADVANTAGE COMPETITIVENESS CONGESTION CORN CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS CLEARANCE CUSTOMS PROCEDURES DEVELOPMENT POLICY DRIVERS ECONOMIC COOPERATION ECONOMIC OUTLOOK ECONOMIC POLICY ECONOMIC RESEARCH ECONOMICS ELASTICITIES ELASTICITY EXOGENOUS VARIABLES EXPORT BASKET EXPORT BASKETS EXPORT DIVERSIFICATION EXPORT MARKETS EXPORT PROCEDURES EXPORT STRUCTURES EXPORT VALUE EXPORTERS EXPORTS EXTERNAL TRADE FOOD EXPORTS FOOD IMPORTS FOOD PRICES FOREIGN MARKETS FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE ZONES FREIGHT FRUIT FRUITS FUELS GDP GDP PER CAPITA GRAINS GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS GROSS DOMESTIC PRODUCT GROWTH RATE HAZARD IMPERFECT COMPETITION IMPORT MARKETS INTERNATIONAL TRADE INTRAREGIONAL TRADE MAIZE MARKET SIZE MARKET SIZE EFFECTS METAL PRODUCTS OPENNESS OPTIMIZATION PACKAGING PALM OIL PATTERNS OF TRADE POSITIVE EFFECTS PROCESSED FOODS PRODUCTIVITY GROWTH RAIL RAIL SERVICES RAILWAY REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE INTEGRATION RICE ROAD ROAD CONDITIONS ROAD HAULAGE ROAD QUALITY ROADS ROUTE ROUTES RUBBER SEAFOOD SPEEDS STEEL STEEL BARS STEEL PRODUCTS STRUCTURAL CHANGE TARIFF BARRIERS TECHNOLOGY TRANSFER TRADE AGREEMENT TRADE BARRIERS TRADE DETERMINANTS TRADE FACILITATION TRADE FLOWS TRADE IMPEDIMENTS TRADE LIBERALIZATION TRADE MODEL TRADE MORE TRADE OPENNESS TRADE PARTNERS TRADE PATTERNS TRADE PERFORMANCE TRADE VARIABLES TRADE VOLUMES TRADE ZONE TRADING PATTERNS TRAFFIC TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODES TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION SERVICES TUBES VEGETABLE OILS VEGETABLES VITAMINS WAXES WHEAT Gordillo, Darwin Marcelo Stokenberga, Aiga Schwartz, Jordan Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America |
| geographic_facet |
Latin America & Caribbean Central America |
| relation |
Policy Research working paper ; no. WPS 5506 |
| description |
The paper identifies the impact of
physical barriers to trade within Central America through
the use of an augmented and partially constrained Gravity
Model of Trade. Adjusting the Euclidian distance factor for
Central America by real average transport times, the model
quantifies the impact of poor connectivity and border
frictions on the region's internal trade as well as its
trade with external partners, such as the United States and
Europe. In addition, the authors benchmark Central
America's trade coefficients against those of a
physically integrated region by running a parallel Gravity
Model for the 15 core countries of the European Union. This
allows for the estimation of potential intra-regional and
external trade levels if Central America were to reduce
border frictions and time of travel between countries and
thus benefit from both the adjacency of each country's
neighbors and the gravitational pull of the region's
economies. The analysis is conducted for all of Central
America's trade and is also disaggregated for three
groups of products -- processed fruits and vegetables; steel
and steel products; and grains -- by both volume and value.
This differentiation tests the consistency of the results
while providing insight into the differentiation in trading
patterns and potential for these containerized, break-bulk,
and bulk products. The results of the model include a
potential doubling in intraregional exports if Central
America could achieve the adjacency and time-distance
factors of a truly integrated region. In addition, the
region's combined exports to the European Union and the
United States are projected to increase by more than a third
compared with the current level, assuming European
Union-level adjacency performance. Even more external trade
benefits would accrue by reducing the economic penalty
imposed by overland transport and border crossing inefficiencies. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Gordillo, Darwin Marcelo Stokenberga, Aiga Schwartz, Jordan |
| author_facet |
Gordillo, Darwin Marcelo Stokenberga, Aiga Schwartz, Jordan |
| author_sort |
Gordillo, Darwin Marcelo |
| title |
Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America |
| title_short |
Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America |
| title_full |
Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America |
| title_fullStr |
Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America |
| title_full_unstemmed |
Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America |
| title_sort |
understanding the benefits of regional integration to trade : the application of a gravity model to the case of central america |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101214085824 http://hdl.handle.net/10986/3990 |
| _version_ |
1764389371056750592 |
| spelling |
okr-10986-39902021-04-23T14:02:14Z Understanding the Benefits of Regional Integration to Trade : The Application of a Gravity Model to the Case of Central America Gordillo, Darwin Marcelo Stokenberga, Aiga Schwartz, Jordan ADVERSE EFFECTS AGRICULTURAL PRODUCTS AGRICULTURE AIR ARTERIES BANANAS BARRIERS TO TRADE BENCHMARK BENCHMARKS BENEFITS OF TRADE BENEFITS OF TRADE FACILITATION BEVERAGES BILATERAL TRADE BORDER CROSSING BORDER CROSSINGS BORDER TRADE BOTTLENECKS CA CANE SUGAR CASTINGS CEREAL PRODUCTS CIGARS COMPARATIVE ADVANTAGE COMPETITIVENESS CONGESTION CORN CUSTOMS CUSTOMS ADMINISTRATION CUSTOMS CLEARANCE CUSTOMS PROCEDURES DEVELOPMENT POLICY DRIVERS ECONOMIC COOPERATION ECONOMIC OUTLOOK ECONOMIC POLICY ECONOMIC RESEARCH ECONOMICS ELASTICITIES ELASTICITY EXOGENOUS VARIABLES EXPORT BASKET EXPORT BASKETS EXPORT DIVERSIFICATION EXPORT MARKETS EXPORT PROCEDURES EXPORT STRUCTURES EXPORT VALUE EXPORTERS EXPORTS EXTERNAL TRADE FOOD EXPORTS FOOD IMPORTS FOOD PRICES FOREIGN MARKETS FREE TRADE FREE TRADE AGREEMENT FREE TRADE AGREEMENTS FREE TRADE ZONES FREIGHT FRUIT FRUITS FUELS GDP GDP PER CAPITA GRAINS GRAVITY EQUATION GRAVITY MODEL GRAVITY MODELS GROSS DOMESTIC PRODUCT GROWTH RATE HAZARD IMPERFECT COMPETITION IMPORT MARKETS INTERNATIONAL TRADE INTRAREGIONAL TRADE MAIZE MARKET SIZE MARKET SIZE EFFECTS METAL PRODUCTS OPENNESS OPTIMIZATION PACKAGING PALM OIL PATTERNS OF TRADE POSITIVE EFFECTS PROCESSED FOODS PRODUCTIVITY GROWTH RAIL RAIL SERVICES RAILWAY REGIONAL INTEGRATION REGIONAL TRADE REGIONAL TRADE INTEGRATION RICE ROAD ROAD CONDITIONS ROAD HAULAGE ROAD QUALITY ROADS ROUTE ROUTES RUBBER SEAFOOD SPEEDS STEEL STEEL BARS STEEL PRODUCTS STRUCTURAL CHANGE TARIFF BARRIERS TECHNOLOGY TRANSFER TRADE AGREEMENT TRADE BARRIERS TRADE DETERMINANTS TRADE FACILITATION TRADE FLOWS TRADE IMPEDIMENTS TRADE LIBERALIZATION TRADE MODEL TRADE MORE TRADE OPENNESS TRADE PARTNERS TRADE PATTERNS TRADE PERFORMANCE TRADE VARIABLES TRADE VOLUMES TRADE ZONE TRADING PATTERNS TRAFFIC TRANSIT TRANSPORT TRANSPORT COSTS TRANSPORT INFRASTRUCTURE TRANSPORT MODES TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION SERVICES TUBES VEGETABLE OILS VEGETABLES VITAMINS WAXES WHEAT The paper identifies the impact of physical barriers to trade within Central America through the use of an augmented and partially constrained Gravity Model of Trade. Adjusting the Euclidian distance factor for Central America by real average transport times, the model quantifies the impact of poor connectivity and border frictions on the region's internal trade as well as its trade with external partners, such as the United States and Europe. In addition, the authors benchmark Central America's trade coefficients against those of a physically integrated region by running a parallel Gravity Model for the 15 core countries of the European Union. This allows for the estimation of potential intra-regional and external trade levels if Central America were to reduce border frictions and time of travel between countries and thus benefit from both the adjacency of each country's neighbors and the gravitational pull of the region's economies. The analysis is conducted for all of Central America's trade and is also disaggregated for three groups of products -- processed fruits and vegetables; steel and steel products; and grains -- by both volume and value. This differentiation tests the consistency of the results while providing insight into the differentiation in trading patterns and potential for these containerized, break-bulk, and bulk products. The results of the model include a potential doubling in intraregional exports if Central America could achieve the adjacency and time-distance factors of a truly integrated region. In addition, the region's combined exports to the European Union and the United States are projected to increase by more than a third compared with the current level, assuming European Union-level adjacency performance. Even more external trade benefits would accrue by reducing the economic penalty imposed by overland transport and border crossing inefficiencies. 2012-03-19T18:43:27Z 2012-03-19T18:43:27Z 2010-12-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101214085824 http://hdl.handle.net/10986/3990 English Policy Research working paper ; no. WPS 5506 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Central America |