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How Far Goods Travel: Global Transport and Supply Chains from 1965-2020

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  • Sharat Ganapati
  • Woan Foong Wong

Abstract

This paper considers the evolution of global transportation usage over the past half century and its implications for supply chains. Transportation usage per unit of real output has more than doubled as costs decreased by a third. Participation of emerging economies in world trade and longer-distance trade between countries contribute to this usage increase, thereby encouraging longer supply chains. We discuss technological advances over this period, and their interactions with endogenous responses from transportation costs and supply chain linkages. Supply chains involving more countries and longer distances are reflective of reliable and efficient transportation, but are also more exposed to disruptions, highlighting the importance of considering the interconnectedness of transportation and supply chains in policymaking and future work.

Suggested Citation

  • Sharat Ganapati & Woan Foong Wong, 2023. "How Far Goods Travel: Global Transport and Supply Chains from 1965-2020," CESifo Working Paper Series 10398, CESifo.
  • Handle: RePEc:ces:ceswps:_10398
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    1. George Alessandria & Joseph P. Kaboski & Virgiliu Midrigan, 2010. "Inventories, Lumpy Trade, and Large Devaluations," American Economic Review, American Economic Association, vol. 100(5), pages 2304-2339, December.
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    More about this item

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F15 - International Economics - - Trade - - - Economic Integration
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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