Regional and Temporal Variations in Transportation Costs for U.S. Imports from Canada
This paper examines the behavior of transportation costs associated with U.S. imports from Canada. In particular, it evaluates whether transportation costs for U.S. imports from Canada increased in the post-9/11 period, thereby contributing to a â€œthickeningâ€ of the Canada-U.S. border. It also identifies whether changes in transportation costs varied across U.S. customs districts encompassing land ports along the Canada-U.S. border. The evidence indicates that an earlier declining trend in transportation costs noticeably decelerated in the post-2001 period. Furthermore, there was substantial variation in the rate of deceleration across the sample customs districts. The variation seems to be related to differential impacts of government policies across regions, such as â€œTrusted Tradeâ€ programs, rather than to changes in commodity import mixes or susceptibility of commodity import mixes to border disruptions.
Volume (Year): 41 (2011)
Issue (Month): 2 ()
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- James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
- David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
- Siew Hoon Lim & C.A. Knox Lovell, 2009. "Profit and productivity of US Class I railroads," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 423-442.
- Steven Globerman & Paul Storer, 2009. "Border Security and Canadian Exports to the United States: Evidence and Policy Implications," Canadian Public Policy, University of Toronto Press, vol. 35(2), pages 171-186, June.
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