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Bilateral Transport Cost, Infrastructure, Common Bilateral Ties and Political Stability

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  • Danielken Molina

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Abstract

Transport Costs are one of the most important sources of barriers to trade. Inspired by this concern, we use an ad-hoc empirical model to examine the possible determinants of transport costs. Using a country aggregate bilateral transport costs database for 1990, we replicate Limao and Venables (2001) and we find that the effect of their infrastructure index on transport costs is not robust. Following Micco (2004) and Micco and Serebrinzky (2005) we calculate two alternative indexes of infrastructure. Using these new indexes we find that not only distance but infrastructure, political stability, common bilateral ties and open sky agreements as well are other important channels through which transport costs can be reduced. ** Los costos de transporte son una de las más importantes fuentes de barreras al comercio. Inspirados por este aspecto, utilizamos un modelo empírico ad-hoc con el fin de examinar los posibles determinantes de los costos de transporte. Utilizando una base de datos de costos de transporte bilaterales para el año 1990, replicamos el trabajo de Limao y Venables (2001) y encontramos que el efecto de su índice de infraestructura sobre los costos de transporte no es robusto. Siguiendo a Micco (2004) y Micco y Serebrinzky (2005) calculamos dos índices alternativos de infraestructura. Utilizando estos índices encontramos que aparte de la distancia, la infraestructura, la estabilidad política, las relaciones bilaterales comunes y los acuerdos de cielos abiertos son otros importantes canales mediante los cuales los costos de transporte pueden reducirse.

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File URL: http://www.urosario.edu.co/economia/documentos/v11n2_molina.pdf
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Bibliographic Info

Article provided by UNIVERSIDAD DEL ROSARIO in its journal REVISTA DE ECONOMÍA DEL ROSARIO.

Volume (Year): (2008)
Issue (Month): ()
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Handle: RePEc:col:000151:006167

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  1. repec:idb:intalp:206 is not listed on IDEAS
  2. Alejandro Micco & Tomás Serebrisky, 2008. "Competition Regimes and Air Transport Costs: The Effects of Open Skies Agreement," IDB Publications 46738, Inter-American Development Bank.
  3. David Hummels, 2006. "The role of geography and size," INTAL Working Papers 1276, Inter-American Development Bank, INTAL.
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