Oil Prices, Geography and Endogenous Regionalism: Too Much Ado About (Almost) Nothing
Abstract
This paper studies the effect of oil prices on the geography of international trade. We model transport costs as a function of variable and fixed costs. By affecting the first cost component, oil prices can then modify the structure of transportation costs across partners. This, we argue, acts as a factor of distortion in relative prices, thereby creating a reallocation of trade at the expense of remote countries. In that respect, an increase in oil prices should favor regionalism.Download Info
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Paper provided by CEPII research center in its series Working Papers with number 2009-26.Length:
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:cii:cepidt:2009-26
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Keywords: REGIONALISM; OIL PRICES; GEOGRAPHY; TRANSPORT;Other versions of this item:
- Mirza, Daniel & Zitouna, Habib, 2010. "Oil Prices, Geography and Endogenous Regionalism: Too Much Ado About (Almost) Nothing," CEPREMAP Working Papers (Docweb) 1009, CEPREMAP.
- F15 - International Economics - - Trade - - - Economic Integration
- F19 - International Economics - - Trade - - - Other
- F20 - International Economics - - International Factor Movements and International Business - - - General
- L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-23 (All new papers)
- NEP-ENE-2010-01-23 (Energy Economics)
- NEP-INT-2010-01-23 (International Trade)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Hummels & Alexandre Skiba, 2004.
"Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture,"
Journal of Political Economy,
University of Chicago Press, vol. 112(6), pages 1384-1402, December.
- David Hummels & Alexandre Skiba, 2002. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," NBER Working Papers 9023, National Bureau of Economic Research, Inc.
- Erkel-Rousse, H. & Mirza, D., 2000.
"Import Price-Elasticities : Reconsidering the Evidence,"
Papiers d'Economie Mathématique et Applications
2000.52, Université Panthéon-Sorbonne (Paris 1).
- Hélène Erkel-Rousse & Daniel Mirza, 2002. "Import price elasticities: reconsidering the evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 35(2), pages 282-306, May.
- Helene Erkel-Rousse & Daniel Mirza, 2000. "Import Price-Elastcities: Reconsidering the Evidence," Econometric Society World Congress 2000 Contributed Papers 0909, Econometric Society.
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