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Domestic Trade and Transportation Costs as Barriers to International Trade

Author

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  • Donald J. Rousslang
  • Theodore To

Abstract

Available evidence indicates that costs of nontraded services in domestic transportation, wholesaling, and retailing (domestic margins) are higher if a good is shipped in international trade than if it is shipped from domestic producers to domestic consumers. Consequently, domestic margins appear to act as natural barriers to trade in the same manner as international transp ort costs do. This paper presents estimates of the barriers that the domestic margins impose against U.S. imports and shows that they exc eed the barriers imposed by tariffs and international transport costs combined.

Suggested Citation

  • Donald J. Rousslang & Theodore To, 1993. "Domestic Trade and Transportation Costs as Barriers to International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 26(1), pages 208-221, February.
  • Handle: RePEc:cje:issued:v:26:y:1993:i:1:p:208-21
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    Citations

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    Cited by:

    1. James Harrigan, 2000. "International Trade and American Wages in General Equilibrium, 1967-1995," NBER Chapters, in: The Impact of International Trade on Wages, pages 171-196, National Bureau of Economic Research, Inc.
    2. Volpe Martincus, Christian & Blyde, Juan, 2013. "Shaky roads and trembling exports: Assessing the trade effects of domestic infrastructure using a natural experiment," Journal of International Economics, Elsevier, vol. 90(1), pages 148-161.
    3. Benjamin Bridgman, 2008. "Energy Prices and the Expansion of World Trade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 904-916, October.
    4. Xu, Hangtian, 2016. "Domestic railroad infrastructure and exports: Evidence from the Silk Route," China Economic Review, Elsevier, vol. 41(C), pages 129-147.
    5. Coşar, A. Kerem & Demir, Banu, 2016. "Domestic road infrastructure and international trade: Evidence from Turkey," Journal of Development Economics, Elsevier, vol. 118(C), pages 232-244.
    6. Christis G. Tombazos, 2010. "Trade and Wage Inequality in a World of Incomplete Diversification," Chapters, in: Noel Gaston & Ahmed M. Khalid (ed.), Globalization and Economic Integration, chapter 8, Edward Elgar Publishing.
    7. Benjamin Bridgman, 2008. "Energy Prices and the Expansion of World Trade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 904-916, October.
    8. Peter Egger & Jan Průša, 2016. "The determinants of trade costs: a random coefficient approach," Empirical Economics, Springer, vol. 50(1), pages 51-58, February.
    9. Peter Egger & Jan Průša, 2016. "The determinants of trade costs: a random coefficient approach," Empirical Economics, Springer, vol. 50(1), pages 51-58, February.
    10. Hangtian Xu, 2014. "Revisit' the Silk Road: A Quasi-Experiment Approach Estimating the Effects of Railway Speed-Up Project on China-Central Asia Exports," ERSA conference papers ersa14p78, European Regional Science Association.
    11. Toru Kikuchi, 2008. "Distribution Costs, International Trade and Industrial Location," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-5.
    12. Salamat Ali & Richard Kneller & Chris Milner, 2018. "Differential effects of internal and external distances on trade flows: The case of Pakistan," Discussion Papers 2018-13, University of Nottingham, GEP.
    13. James Harrigan, 2001. "Specialization and the volume of trade: do the data obey the laws?," Staff Reports 140, Federal Reserve Bank of New York.
    14. repec:ebl:ecbull:v:6:y:2008:i:24:p:1-5 is not listed on IDEAS
    15. Sonali Deraniyagala & Ben Fine, 2000. "New Trade Theory Versus Old Trade Policy: A Continuing Enigma," Working Papers 102, Department of Economics, SOAS, University of London, UK.
    16. Benjamin Bridgman, 2008. "Energy Prices and the Expansion of World Trade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 904-916, October.
    17. Jorge García-García & Enrique Montes-Uribe & Iader Giraldo-Salazar (ed.), 2019. "Comercio exterior en Colombia: política, instituciones, costos y resultados," Books, Banco de la Republica de Colombia, number 2019-isbn:9789586644068.
    18. Jorge García-García & David C. López-Valenzuela & Enrique Montes-Uribe, 2020. "Porqué Colombia no exporta más," Borradores de Economia 1139, Banco de la Republica de Colombia.
    19. Kei-Mu Yi, 2010. "Can Multistage Production Explain the Home Bias in Trade?," American Economic Review, American Economic Association, vol. 100(1), pages 364-393, March.

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