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Estimating The Effects of the Container Revolution on World Trade

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  • Daniel Bernhofen
  • Zouheir El-Sahli
  • Richard Kneller

Abstract

We quantify the effects of the container revolution on a large panel of product level trade flows during 1962-1990. We exploit time and cross-sectional variation in countries’ first adoption of container facilities to construct a time-varying bilateral container technology variable and estimate its effects on trade in the panel. On North-North trade, the cumulative average treatment effects of containerization over a 20 year time period amount to about 700%, can be interpreted as causal and are larger than the standard policy liberalization variables. In a nutshell, we provide the first econometric evidence for containerization to be a driver of 20th century economic globalization.

Suggested Citation

  • Daniel Bernhofen & Zouheir El-Sahli & Richard Kneller, 2013. "Estimating The Effects of the Container Revolution on World Trade," Discussion Papers 2013-02, University of Nottingham, GEP.
    • Handle: RePEc:not:notgep:13/02
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    References listed on IDEAS

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    More about this item

    Keywords

    containerization; 20th century global transportation infrastructure.;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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