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The Role of Transportation Costs for People

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  • James E. Rauch

    (Department of Economics, University of California at San Diego, La Jolla, CA, jrauch@weber.ucsd.edu)

Abstract

Exports can enable developing countries to overcome the problem of small domestic markets. Manufactured exports from developing to industrial countries often require transfer of technological know-how from the latter to the former through repeated movement of engineers and other skilled personnel. The cost of this movement increases with distance. Distance from the temperate industrial world thus becomes an obstacle for productivity increase in the tropics. Export trading companies can help to conquer distance by gathering information and matching domestic producers with foreign buyers.

Suggested Citation

  • James E. Rauch, 1999. "The Role of Transportation Costs for People," International Regional Science Review, , vol. 22(2), pages 173-178, August.
    • Handle: RePEc:sae:inrsre:v:22:y:1999:i:2:p:173-178
    DOI: 10.1177/016001799761012325
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    References listed on IDEAS

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    5. Grossman, Gene M & Helpman, Elhanan, 1991. "Endogenous Product Cycles," Economic Journal, Royal Economic Society, vol. 101(408), pages 1214-1229, September.
    6. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
    7. James E. Rauch, 1996. "Trade and Search: Social Capital, Sogo Shosha, and Spillovers," NBER Working Papers 5618, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Michael F. Goodchild & Luc Anselin & Richard P. Appelbaum & Barbara Herr Harthorn, 2000. "Toward Spatially Integrated Social Science," International Regional Science Review, , vol. 23(2), pages 139-159, April.

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