Production Fragmentation and Transport Mode Choice in EU-28 Exports

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 stud...

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Bibliographic Details
Published in:The International trade journal 2024-11, Vol.38 (6), p.563-587
Main Authors: Türkcan, Kemal, Saygılı, Hülya
Format: Article
Language:English
Subjects:
EU-28
Exports
fragmentation of production
International trade
mode of transportation
Production
Transportation
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Summary: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.
ISSN:0885-3908
1521-0545
DOI:10.1080/08853908.2024.2312911