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The world is not yet flat : transport costs matter !

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  • Behrens,Kristian
  • Brown,W. Mark
  • Bougna Lonla,Theophile

Abstract

The paper provides evidence of the effects of changes in transport costs on the geographic concentration of industries. The analysis uses micro-level commodity flow data and micro-geographic plant-level data to construct industry-specific ad valorem trucking rates and continuous measures of geographic concentration. The findings show that, controlling for international trade exposure and input-output links, increasing trucking rates are significantly associated with declining geographic concentration. The effect is large: changes in trucking rates explain around 20 percent of the observed decline in geographic concentration of Canadian manufacturing industries between 1992 and 2008.

Suggested Citation

  • Behrens,Kristian & Brown,W. Mark & Bougna Lonla,Theophile, 2016. "The world is not yet flat : transport costs matter !," Policy Research Working Paper Series 7862, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7862
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tomoya Mori, 2017. "Agglomeration," KIER Working Papers 960, Kyoto University, Institute of Economic Research.
    2. Ekaterina Aleksandrova & Kristian Behrens & Maria Kuznetsova, 2018. "Manufacturing (Co)Agglomeration in a Transition Country: Evidence from Russia," HSE Working papers WP BRP 186/EC/2018, National Research University Higher School of Economics.
    3. Behrens, Kristian & Sharunova, Vera, 2015. "Inter- and intra-firm linkages: Evidence from microgeographic location patterns," CEPR Discussion Papers 10921, C.E.P.R. Discussion Papers.
    4. Behrens, Kristian & Guillain, Rachel, 2017. "The determinants of coagglomeration: Evidence from functional employment patterns," CEPR Discussion Papers 11884, C.E.P.R. Discussion Papers.
    5. Kristian Behrens & Brahim Boualam & Julien Martin, 2016. "The resilience of the Canadian textile industries and clusters to shocks, 2001-2013," CIRANO Project Reports 2016rp-05, CIRANO.

    More about this item

    Keywords

    Economic Geography; International Trade and Trade Rules; General Manufacturing; Construction Industry;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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