Abstract:
The paper models the choice of transportation mode and transportation route (defined by a border entry point) for the goods imported into Russian Federation. We estimate the parameters of the model on a detailed dataset on import flows between foreign countries and Russian regions trough more than 250 entry points on the borders of Russia-Belarus-Kazakhstan custom union. We measure the relative importance of geographical distance, regional market potential and quality of transport infrastructure for the choice of a route, and the importance of having a efficient (short) route for the intensity of trade.