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        Air Cargo beyond Trade Barriers in Africa

        ( Bianka Dettmer ),( Andreas Freytag ),( Peter Draper ) 세종대학교 경제통합연구소 2014 Journal of Economic Integration Vol.29 No.1

        We develop a methodology based on two important criteria-sensitivity in delivery time and value-to-weight ratio-to classify air cargo products. The classification is applied to evaluate the trade integration in Southern Africa since air cargo is a valuable option to overcome trade barriers associated with poor land transport infrastructure and corruption. We find that South Africa`s exports to industrialized countries consist of precious products such as diamonds and gold. These products tend to be transported in the hand baggage of a security personnel as they leave the loading weight of an average airplane almost unaffected. When correcting African trade for these ‘invisible outliers’ in the loading freight, we find that African trade integration including Southern Africa is based upon a comparatively higher share of air cargo relevant products than Southern Africa`s trade with industrialized and emerging economies. A more liberal market for air cargo services can reduce transport costs and will allow the continent to integrate even further.

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        International Service Transactions: Is Time a Trade Barrier in a Connected World?

        Bianka Dettmer 한국국제경제학회 2014 International Economic Journal Vol.28 No.2

        Firms’ international fragmentation of production has recently widened its focus from outsourcing of intermediates to off-shoring of business services such as software program development and international call center networks. Although many services are intangible and non-storable, gravity model estimates show that geographical distance between business partners matters less for commercial service transactions. Rather, time zones can be a driving force of international service trade by allowing for continuous operation over a 24 hours business day (continuity effect) when a proper division of labor is feasible and countries are connected to electronic communications infrastructure (ICT). But even when ICT provides alternatives for face-to-face interaction, time zones can act as a barrier when coordination problems with sleeping business partners occur (synchronization effect). In this paper, we find empirical evidence for the continuity effect in trade of business services, which is robust to measurement and sample size. Even more important is that the effect of time zones on service trade depends on access to ICT. An improvement of ICT infrastructure will affect business service trade at long time zone distances significantly more than trade at short time zone distances.

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