Logistics performance and export variety: Evidence from Turkey


TÖNGÜR Ü., TÜRKCAN K., EKMEN ÖZÇELİK S.

CENTRAL BANK REVIEW, vol.20, no.3, pp.143-154, 2020 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 20 Issue: 3
  • Publication Date: 2020
  • Doi Number: 10.1016/j.cbrev.2020.04.002
  • Journal Name: CENTRAL BANK REVIEW
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.143-154
  • Keywords: Trade facilitation, Logistic performance, Export margins, Export variety, Turkey, TRADE FACILITATION, INTERNATIONAL-TRADE, EXTENSIVE MARGIN, TRANSPORT COSTS, INFRASTRUCTURE, GRAVITY, IMPACT
  • Akdeniz University Affiliated: Yes

Abstract

This study examines the effects of logistics infrastructure on export variety, as measured by the extensive margin. Using finely disaggregated exports data for Turkey's trade with 174 countries over the period 2007-2017, we decompose gross export flows into the extensive and intensive margins of Turkish exports utilizing the method developed by Hummels and Klenow (2005). Gravity estimates suggest that logistics infrastructure positively influences export values and has a greater impact on the extensive margin than the intensive margin. Our empirical analysis further suggests that Turkish exporters are more sensitive to changes in local market logistics conditions than to those of their trade partners. These findings are robust to a variety of alternative measures and estimation methods. (c) 2020 Central Bank of The Republic of Turkey. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).