Transportation Costs and International Trade in the Second Era of Globalization
While the precise causes of postwar trade growth are not well understood, declines in transport costs top the lists of usual suspects. However, there is remarkably little systematic evidence documenting the decline. This paper brings to bear an eclectic mix of data in order to provide a detailed accounting of the time-series pattern of shipping costs. The ad-valorem impact of ocean shipping costs is not much lower today than in the 1950s, with technological advances largely trumped by adverse cost shocks. In contrast, air shipping costs have dropped an order of magnitude, and airborne trade has grown rapidly as a result. As a result, international trade has also experienced a significant rise in speed.
Volume (Year): 21 (2007)
Issue (Month): 3 (Summer)
|Contact details of provider:|| Web page: https://www.aeaweb.org/jep/|
More information through EDIRC
|Order Information:||Web: https://www.aeaweb.org/subscribe.html|
References listed on IDEAS
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.:
- David L. Hummels & Georg Schaur, 2009.
"Hedging Price Volatility Using Fast Transport,"
NBER Working Papers
15154, National Bureau of Economic Research, Inc.
- James Harrigan & Anthony J. Venables, 2004.
"Timeliness, Trade and Agglomeration,"
CEP Discussion Papers
dp0616, Centre for Economic Performance, LSE.
- James Harrigan & Tony Venables, 2004. "Timeliness, trade and agglomeration," LSE Research Online Documents on Economics 2300, London School of Economics and Political Science, LSE Library.
- James Harrigan & Anthony J. Venables, 2004. "Timeliness, Trade and Agglomeration," NBER Working Papers 10404, National Bureau of Economic Research, Inc.
- Harrigan, James & Venables, Anthony J, 2004. "Timeliness, Trade and Agglomeration," CEPR Discussion Papers 4294, C.E.P.R. Discussion Papers.
- Antoni Estevadeordal & Brian Frantz & Alan M. Taylor, 2002.
"The Rise and Fall of World Trade, 1870-1939,"
NBER Working Papers
9318, National Bureau of Economic Research, Inc.
- David Hummels & Jun Ishii & Kei-Mu Yi, 1999.
"The nature and growth of vertical specialization in world trade,"
72, Federal Reserve Bank of New York.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
- Hummels, David & Lugovskyy, Volodymyr & Skiba, Alexandre, 2009.
"The trade reducing effects of market power in international shipping,"
Journal of Development Economics,
Elsevier, vol. 89(1), pages 84-97, May.
- David Hummels & Volodymyr Lugovskyy & Alexandre Skiba, 2007. "The Trade Reducing Effects of Market Power in International Shipping," NBER Working Papers 12914, National Bureau of Economic Research, Inc.
- Peter K. Schott, 2004. "Across-product Versus Within-product Specialization in International Trade," The Quarterly Journal of Economics, MIT Press, vol. 119(2), pages 646-677, May.
- Aizenman, Joshua, 2004.
"Endogenous pricing to market and financing costs,"
Journal of Monetary Economics,
Elsevier, vol. 51(4), pages 691-712, May.
- Harley, C.K., 1988. "Ocean Freight Rates And Productivity, 1740-1913: The Primacy Of Mechanical Invention Reaffirmed," UWO Department of Economics Working Papers 8802, University of Western Ontario, Department of Economics.
- North, Douglass, 1958. "Ocean Freight Rates and Economic Development 1730-1913," The Journal of Economic History, Cambridge University Press, vol. 18(04), pages 537-555, December.
- Gordon, Robert J., 1990. "The Measurement of Durable Goods Prices," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226304557.
- Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, 07.
- Anne-Célia Disdier & Keith Head, 2004.
"The Puzzling Persistence of the Distance Effect on Bilateral Trade,"
Development Working Papers
186, Centro Studi Luca d\'Agliano, University of Milano.
- Anne-Célia Disdier & Keith Head, 2008. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 37-48, February.
- Knick Harley, C., 1980. "Transportation, the world wheat trade, and the Kuznets Cycle, 1850-1913," Explorations in Economic History, Elsevier, vol. 17(3), pages 218-250, July.
- Knick Harley, C., 1989. "Coal exports and British shipping, 1850-1913," Explorations in Economic History, Elsevier, vol. 26(3), pages 311-338, July.
- Waters, W G, II, 1970. "Transport Costs, Tariffs, and the Pattern of Industrial Protection," American Economic Review, American Economic Association, vol. 60(5), pages 1013-20, December.
- David Hummels & Volodymyr Lugovskyy, 2006. "Are Matched Partner Trade Statistics a Usable Measure of Transportation Costs?," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 69-86, 02.
- Douglass C. North, 1968. "Sources of Productivity Change in Ocean Shipping, 1600-1850," Journal of Political Economy, University of Chicago Press, vol. 76, pages 953.
- Bruce A. Blonigen & Wesley Wilson, 2006. "New Measures of Port Efficiency Using International Trade Data," NBER Working Papers 12052, National Bureau of Economic Research, Inc.
- Harley, C.K., 1988. "Coal Exports And British Shipping, 1850-1913," UWO Department of Economics Working Papers 8807, University of Western Ontario, Department of Economics.
- Michael A. Clemens & Jeffrey G. Williamson, 2002. "Why Did the Tariff-Growth Correlation Reverse After 1950?," NBER Working Papers 9181, National Bureau of Economic Research, Inc.
- Harrigan, James, 2010.
"Airplanes and comparative advantage,"
Journal of International Economics,
Elsevier, vol. 82(2), pages 181-194, November.
- Harley, C. Knick, 1988. "Ocean Freight Rates and Productivity, 1740–1913: The Primacy of Mechanical Invention Reaffirmed," The Journal of Economic History, Cambridge University Press, vol. 48(04), pages 851-876, December.
When requesting a correction, please mention this item's handle: RePEc:aea:jecper:v:21:y:2007:i:3:p:131-154. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros)or (Michael P. Albert)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.