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Bilateral Transport Cost, Infrastructure, Common Bilateral Ties and Political Stability

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  • Danielken Molina

Abstract

Transport Costs are one of the most important sources of barriersto trade. Inspired by this concern, we use an ad-hoc empirical model to examinethe possible determinants of transport costs.Using a country aggregate bilateral transport costs database for 1990, wereplicate Limao and Venables (2001) and we find that the effect of their infrastructureindex on transport costs is not robust. Following Micco (2004) andMicco and Serebrinzky (2005) we calculate two alternative indexes of infrastructure.Using these new indexes we find that not only distance but infrastructure,political stability, common bilateral ties and open sky agreements as wellare other important channels through which transport costs can be reduced.**Los costos de transporte son una de las más importantes fuentesde barreras al comercio. Inspirados por este aspecto, utilizamos un modeloempírico ad-hoc con el fin de examinar los posibles determinantes de los costosde transporte.Utilizando una base de datos de costos de transporte bilaterales para el ano1990, replicamos el trabajo de Limao y Venables (2001) y encontramos queel efecto de su índice de infraestructura sobre los costos de transporte no esrobusto. Siguiendo a Micco (2004) y Micco y Serebrinzky (2005) calculamosdos índices alternativos de infraestructura. Utilizando estos índices encontramosque aparte de la distancia, la infraestructura, la estabilidad política, lasrelaciones bilaterales comunes y los acuerdos de cielos abiertos son otros importantescanales mediante los cuales los costos de transporte pueden reducirse.

Suggested Citation

  • Danielken Molina, 2008. "Bilateral Transport Cost, Infrastructure, Common Bilateral Ties and Political Stability," Revista de Economía del Rosario, Universidad del Rosario.
    • Handle: RePEc:col:000151:006167
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    References listed on IDEAS

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    1. repec:idb:brikps:8698 is not listed on IDEAS
    2. Micco, Alejandro & Serebrisky, Tomas, 2006. "Competition regimes and air transport costs: The effects of open skies agreements," Journal of International Economics, Elsevier, vol. 70(1), pages 25-51, September.
    3. David Hummels, 2006. "The role of geography and size," INTAL Working Papers 1276, Inter-American Development Bank, INTAL.
    4. repec:wbk:wbpubs:8150 is not listed on IDEAS
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    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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