Logistics performance and export variety: Evidence from Turkey

Özet

This study examines the effects of logistics infrastructure on export variety, as measured by the extensivemargin. Usingfinely disaggregated exports data for Turkey’s trade with 174 countries over the period2007e2017, we decompose gross exportflows into the extensive and intensive margins of Turkish ex-ports utilizing the method developed by Hummels and Klenow (2005). Gravity estimates suggest thatlogistics infrastructure positively influences export values and has a greater impact on the extensivemargin than the intensive margin. Our empirical analysis further suggests that Turkish exporters aremore sensitive to changes in local market logistics conditions than to those of their trade partners. Thesefindings are robust to a variety of alternative measures and estimation methods.