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Domestic Trade and Transportation Costs as Barriers to International Trade

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Author Info

  • Donald J. Rousslang
  • Theodore To

Abstract

Available evidence indicates that costs of nontraded services in domestic transportation, wholesaling, and retailing (domestic margins) are higher if a good is shipped in international trade than if it is shipped from domestic producers to domestic consumers. Consequently, domestic margins appear to act as natural barriers to trade in the same manner as international transp ort costs do. This paper presents estimates of the barriers that the domestic margins impose against U.S. imports and shows that they exc eed the barriers imposed by tariffs and international transport costs combined.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 26 (1993)
Issue (Month): 1 (February)
Pages: 208-21

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Handle: RePEc:cje:issued:v:26:y:1993:i:1:p:208-21

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Cited by:
  1. Kei-Mu Yi, 2008. "Can multi-stage production explain the home bias in trade?," Working Papers 08-12, Federal Reserve Bank of Philadelphia.
  2. Christian Volpe Martincus & Juan S. Blyde, 2012. "Shaky Roads and Trembling Exports: Assessing the Trade Effects of Domestic Infrastructure Using a Natural Experiment," IDB Publications 82533, Inter-American Development Bank.
  3. repec:ebl:ecbull:v:6:y:2008:i:24:p:1-5 is not listed on IDEAS
  4. A. Kerem Cosar & Banu Demir, 2014. "Domestic Road Infrastructure and International Trade: Evidence from Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1406, Koc University-TUSIAD Economic Research Forum.
  5. James Harrigan, 1998. "International trade and American wages in general equilibrium, 1967-1995," Staff Reports 46, Federal Reserve Bank of New York.
  6. Benjamin Bridgman, . "Energy Prices and the Expansion of World Trade," Departmental Working Papers 2003-14, Department of Economics, Louisiana State University.
  7. Sonali Deraniyagala & Ben Fine, 2000. "New Trade Theory Versus Old Trade Policy: A Continuing Enigma," Working Papers 102, Department of Economics, SOAS, University of London, UK.
  8. Toru Kikuchi, 2008. "Distribution Costs, International Trade and Industrial Location," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-5.
  9. James Harrigan, 2001. "Specialization and the Volume of Trade: Do the Data Obey the Laws?," NBER Working Papers 8675, National Bureau of Economic Research, Inc.
  10. Benjamin Bridgman, 2008. "Data files for "Energy Prices and the Expansion of World Trade"," Technical Appendices 06-199, Review of Economic Dynamics.

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