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Shaky roads and trembling exports: Assessing the trade effects of domestic infrastructure using a natural experiment

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  • Volpe Martincus, Christian
  • Blyde, Juan

Abstract

Our knowledge of the trade effects of domestic infrastructure is very limited. The reason is twofold. First, data needed to examine these effects are not readily available. Second, identifying such effects requires properly addressing potential endogeneity problems affecting the relationship between internal infrastructure and trade. In this paper, we overcome these limitations by combining firm-level export data with detailed geo-referenced information on Chile and by exploiting the earthquake that took place in this country in 2010 as an exogenous source of variation in available infrastructure and thereby in transport costs. We find that diminished transportation infrastructure had a significant negative impact on firms' exports.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 90 (2013)
Issue (Month): 1 ()
Pages: 148-161

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Handle: RePEc:eee:inecon:v:90:y:2013:i:1:p:148-161

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Web page: http://www.elsevier.com/locate/inca/505552

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Keywords: Firms; Transport infrastructure; Exports; Chile;

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Cited by:
  1. 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.
  2. Luis Castro & Ben Li & Keith Maskus & Yiqing Xie, 2014. "Fixed Export Costs and Export Behavior," Boston College Working Papers in Economics 855, Boston College Department of Economics.

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