A Gravity Model of Barriers to Trade in New Zealand

Murat Genc and David Law ()

No 14/05, Treasury Working Paper Series from New Zealand Treasury

Abstract: There are many costs associated with international trade. These costs act as barriers to trade and affect the level of trade. This paper first provides a brief discussion of the state-of- the-art methods used to measure trade costs and to quantify their impact on trade. It then empirically investigates the role of a range of barriers to New Zealand’s trade within the framework of a gravity model of trade. The analysis covers New Zealand’s trade with around 200 trade partners over the years 2001 to 2006, and includes tariffs and a number of non-trade policy factors such as property rights, financial market sophistication, corruption, and a range of measures related to infrastructure quality. The empirical evidence both in the literature and in this study highlights the growing importance of nonpolicy induced barriers to trade.

JEL-codes: F00 F10 F14 (search for similar items in EconPapers)
Pages: 55
Date: 2014-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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