Quote:
Originally Posted by OLD BOY
What a strange question, Andrew.
Proximity is convenient, but distance is not the barrier it once was.
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Not a strange question if you understand trade. Do you have an answer?
Regarding proximity, it's still key. The standard analysis for goods is that
each doubling of distance with a trading partner halves trade between them.
A survey of Canadian services exports found that each one per cent increase in distance with a trading partner reduced trade by a third of one per cent.
https://www.nber.org/papers/w17630
The International Monetary Fund, which generated some estimates for the UK,
found that the effect of distances on services trade was even higher than for goods. https://www.imf.org/external/pubs/ft...16/cr16169.pdf