Transport Costs and International Trade
AbstractThe first issue we study is the impact of transport costs on the volume and nature of international trade.� To what extent has the rise in international trade been driven by changes in transport costs?� Why is cross-country and cross-regional experience so different?� Transport costs also influence modal choice, the commodity composition of trade and the organisation of production, particularly as 'just-in-time' methods get extended to the global level.� In turn, these new production methods are placing increasing demands on the transport system.� The second issue is the determinants of international transport costs.� There is enormous cross-country variation in transport costs and in trade costs more generally.� To what extent are these determined by geography, infrastructure deficiencies or institutional barriers?� Through time, the evidence is that transport costs have not fallen as much as many people might expect.� We explore this paradox.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 488.
Date of creation: 01 Jun 2010
Date of revision:
Trade costs; Gravity equation; Trade infrastructure; Trade facilitation;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
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