Oil Prices, Geography and Endogenous Regionalism: Too Much Ado About (Almost) Nothing
AbstractThis 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.
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Bibliographic InfoPaper provided by CEPII research center in its series Working Papers with number 2009-26.
Date of creation: Oct 2009
Date of revision:
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)
Please 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.:
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