Production Fragmentation and Transport Mode Choice in EU-28 Exports


Türkcan K., Saygılı H.

INTERNATIONAL TRADE JOURNAL, vol.1, no.1, pp.1-25, 2024 (ESCI)

  • Publication Type: Article / Article
  • Volume: 1 Issue: 1
  • Publication Date: 2024
  • Doi Number: 10.1080/08853908.2024.2312911
  • Journal Name: INTERNATIONAL TRADE JOURNAL
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
  • Page Numbers: pp.1-25
  • Akdeniz University Affiliated: Yes

Abstract

This study uses detailed data on exports from the European Union (EU-28) to non-EU countries to investigate the impact of global production fragmentation on the choice of transportation modes. The article finds a positive relationship between production fragmentation and air transportation. The study also finds that air transportation is more likely to be chosen for high-value products. Additionally, the positive effect of production fragmentation on the likelihood of using air transportation is more pronounced when goods are exported to medium-range markets, upper-middle-income countries, countries with better air transportation infrastructure, and time-sensitive products.