Working Paper

Infrastructure and Trade: A Gravity Analysis for Major Trade Categories Using a New Index of Infrastructure

Authors

  • Julian Donaubauer
  • Alexander Glas
  • Peter Nunnenkamp
Publication Date

Making use of considerably improved measures of infrastructure, we assess the impact of infrastructure on bilateral trade for a panel of 37 developed and emerging economies during the period 1995-2011. We find significant and non-linear effects of overall infrastructure and infrastructure in transportation, communication, energy, and finance on trade in consumption goods, capital goods, and intermediates. Our major findings prove to be robust to various modifications and extensions of the gravity model. Importantly, we still observe significant and non-linear effects of infrastructure on bilateral trade after accounting for potential reverse causality.

Info

JEL Classification
F14, O18

Key Words

  • energy
  • finance
  • Handel
  • ICT
  • infrastructure
  • Infrastruktur
  • trade
  • transport