Is Our World Going to Get a Whole Lot Smaller?
The surge of oil prices in recent years has led to speculation that rising transportation costs could end the period of dramatic world trade growth Ñin the words of Rubin (2009), ÒÉYour world is going to get a whole lot smaller.Ó Using data from ChinaÕs Customs Statistics, we examine the impact of oil prices on tradeÕs sensitivity to distance. We find that higher oil prices increase tradeÕs elasticity to distance, but that the economic effect is small. We also find that the effect is more pronounced for trade within global production networks, and less large for goods shipped by air.
|Date of creation:||Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: 2424 Maile Way, Social Sciences Building 542, Honolulu, Hawaii 96822|
Fax: (808) 956-2889
Web page: http://www.uhero.hawaii.edu
More information through EDIRC
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.:
- Joao Santos Silva & Silvana Tenreyro, 2005.
"The log of gravity,"
LSE Research Online Documents on Economics
3744, London School of Economics and Political Science, LSE Library.
When requesting a correction, please mention this item's handle: RePEc:hae:wpaper:2011-1. 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: (UHERO)
If references are entirely missing, you can add them using this form.