Trade and the distribution sector: some evidence from OECD countries

In this paper the link between an economy's distribution sector and its int ernational trade is studied, using bilateral trade data from twenty-three O ECD countries. The empirical analysis provides strong support for the view that the distribution sector has considerable impact on a country's trade a nd that high distribution costs can act as a trade barrier. It is found tha t increased efficiency of the distribution sectors of trading countries wil l increase trade between them.