GEOGRAPHY, TRANSPORTATION, AND ENDOGENOUS TRADE COSTS
In this paper, we study the role of the transportation sector in world trade. We build a spatial model that centers on the interaction of the market for (oceanic) transportation services and the market for world trade in goods. The model delivers equilibrium trade flows, as well as equilibrium trade...
Gespeichert in:
Veröffentlicht in: | Econometrica 2020-03, Vol.88 (2), p.657-691 |
---|---|
Hauptverfasser: | , , |
Format: | Artikel |
Sprache: | eng |
Schlagworte: | |
Online-Zugang: | Volltext |
Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
container_end_page | 691 |
---|---|
container_issue | 2 |
container_start_page | 657 |
container_title | Econometrica |
container_volume | 88 |
creator | Brancaccio, Giulia Kalouptsidi, Myrto Papageorgiou, Theodore |
description | In this paper, we study the role of the transportation sector in world trade. We build a spatial model that centers on the interaction of the market for (oceanic) transportation services and the market for world trade in goods. The model delivers equilibrium trade flows, as well as equilibrium trade costs (shipping prices). Using detailed data on vessel movements and shipping prices, we document novel facts about shipping patterns; we then flexibly estimate our model. We use this setup to demonstrate that the transportation sector (i) attenuates differences in the comparative advantage across countries; (ii) generates network effects in trade costs; and (iii) dampens the impact of shocks on trade flows. These three mechanisms reveal a new role for geography in international trade that was previously concealed by the frequently-used assumption of exogenous trade costs. Finally, we illustrate how our setup can be used for policy analysis by evaluating the impact of future and existing infrastructure projects (e.g., Northwest Passage, Panama Canal). |
doi_str_mv | 10.3982/ecta15455 |
format | Article |
fullrecord | <record><control><sourceid>jstor_proqu</sourceid><recordid>TN_cdi_proquest_journals_2379635340</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><jstor_id>48584196</jstor_id><sourcerecordid>48584196</sourcerecordid><originalsourceid>FETCH-LOGICAL-c4601-dc11facdc53b963f6bae134cf589d8b07d7e5515135a5fe35eefd052d36985513</originalsourceid><addsrcrecordid>eNp1kE9Lw0AQxRdRsFYPfgAh4ElodP_NdnMMaUyFki1NevAU0s0utFRTsy3Sb--2EW_CwAzM770ZHkL3BD-zSNIXo_c1AQ5wgQaECxliKuglGmBMaBgJSa_RjXMbjDH4GiDIUpUt4vn0fRSUizgv5mpRxuWbykdBnE-CNJ-oLM3VsjitJ2mQqKIsbtGVrbfO3P32IVq-pmUyDWcqe0viWai5wCRsNCG21o0GtooEs2JVG8K4tiCjRq7wuBkbAAKEQQ3WMDDGNhhow0Qk_YIN0WPvu-var4Nx-2rTHrpPf7KibOwtgXHsqaee0l3rXGdstevWH3V3rAiuTqlUaVLG51Q8S3r2e701x__B80R9avj0xUOv2bh92_1puATJiX_iByUvZpM</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2379635340</pqid></control><display><type>article</type><title>GEOGRAPHY, TRANSPORTATION, AND ENDOGENOUS TRADE COSTS</title><source>Wiley Online Library</source><source>JSTOR</source><source>JSTOR Mathematics & Statistics Collection</source><creator>Brancaccio, Giulia ; Kalouptsidi, Myrto ; Papageorgiou, Theodore</creator><creatorcontrib>Brancaccio, Giulia ; Kalouptsidi, Myrto ; Papageorgiou, Theodore</creatorcontrib><description>In this paper, we study the role of the transportation sector in world trade. We build a spatial model that centers on the interaction of the market for (oceanic) transportation services and the market for world trade in goods. The model delivers equilibrium trade flows, as well as equilibrium trade costs (shipping prices). Using detailed data on vessel movements and shipping prices, we document novel facts about shipping patterns; we then flexibly estimate our model. We use this setup to demonstrate that the transportation sector (i) attenuates differences in the comparative advantage across countries; (ii) generates network effects in trade costs; and (iii) dampens the impact of shocks on trade flows. These three mechanisms reveal a new role for geography in international trade that was previously concealed by the frequently-used assumption of exogenous trade costs. Finally, we illustrate how our setup can be used for policy analysis by evaluating the impact of future and existing infrastructure projects (e.g., Northwest Passage, Panama Canal).</description><identifier>ISSN: 0012-9682</identifier><identifier>EISSN: 1468-0262</identifier><identifier>DOI: 10.3982/ecta15455</identifier><language>eng</language><publisher>Evanston: Wiley</publisher><subject>Comparative studies ; Endogenous ; Equilibrium ; Geography ; import‐export complementarity ; Infrastructure ; International trade ; maritime infrastructure ; matching function estimation ; network effects ; Policy analysis ; Prices ; shipping ; Shipping industry ; trade costs ; trade elasticity ; Trade flows ; trade imbalances ; Transportation ; Transportation industry ; Transportation services</subject><ispartof>Econometrica, 2020-03, Vol.88 (2), p.657-691</ispartof><rights>2020 The Econometric Society</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c4601-dc11facdc53b963f6bae134cf589d8b07d7e5515135a5fe35eefd052d36985513</citedby><cites>FETCH-LOGICAL-c4601-dc11facdc53b963f6bae134cf589d8b07d7e5515135a5fe35eefd052d36985513</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/48584196$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/48584196$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,780,784,803,832,1416,27923,27924,45573,45574,58016,58020,58249,58253</link.rule.ids></links><search><creatorcontrib>Brancaccio, Giulia</creatorcontrib><creatorcontrib>Kalouptsidi, Myrto</creatorcontrib><creatorcontrib>Papageorgiou, Theodore</creatorcontrib><title>GEOGRAPHY, TRANSPORTATION, AND ENDOGENOUS TRADE COSTS</title><title>Econometrica</title><description>In this paper, we study the role of the transportation sector in world trade. We build a spatial model that centers on the interaction of the market for (oceanic) transportation services and the market for world trade in goods. The model delivers equilibrium trade flows, as well as equilibrium trade costs (shipping prices). Using detailed data on vessel movements and shipping prices, we document novel facts about shipping patterns; we then flexibly estimate our model. We use this setup to demonstrate that the transportation sector (i) attenuates differences in the comparative advantage across countries; (ii) generates network effects in trade costs; and (iii) dampens the impact of shocks on trade flows. These three mechanisms reveal a new role for geography in international trade that was previously concealed by the frequently-used assumption of exogenous trade costs. Finally, we illustrate how our setup can be used for policy analysis by evaluating the impact of future and existing infrastructure projects (e.g., Northwest Passage, Panama Canal).</description><subject>Comparative studies</subject><subject>Endogenous</subject><subject>Equilibrium</subject><subject>Geography</subject><subject>import‐export complementarity</subject><subject>Infrastructure</subject><subject>International trade</subject><subject>maritime infrastructure</subject><subject>matching function estimation</subject><subject>network effects</subject><subject>Policy analysis</subject><subject>Prices</subject><subject>shipping</subject><subject>Shipping industry</subject><subject>trade costs</subject><subject>trade elasticity</subject><subject>Trade flows</subject><subject>trade imbalances</subject><subject>Transportation</subject><subject>Transportation industry</subject><subject>Transportation services</subject><issn>0012-9682</issn><issn>1468-0262</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2020</creationdate><recordtype>article</recordtype><recordid>eNp1kE9Lw0AQxRdRsFYPfgAh4ElodP_NdnMMaUyFki1NevAU0s0utFRTsy3Sb--2EW_CwAzM770ZHkL3BD-zSNIXo_c1AQ5wgQaECxliKuglGmBMaBgJSa_RjXMbjDH4GiDIUpUt4vn0fRSUizgv5mpRxuWbykdBnE-CNJ-oLM3VsjitJ2mQqKIsbtGVrbfO3P32IVq-pmUyDWcqe0viWai5wCRsNCG21o0GtooEs2JVG8K4tiCjRq7wuBkbAAKEQQ3WMDDGNhhow0Qk_YIN0WPvu-var4Nx-2rTHrpPf7KibOwtgXHsqaee0l3rXGdstevWH3V3rAiuTqlUaVLG51Q8S3r2e701x__B80R9avj0xUOv2bh92_1puATJiX_iByUvZpM</recordid><startdate>202003</startdate><enddate>202003</enddate><creator>Brancaccio, Giulia</creator><creator>Kalouptsidi, Myrto</creator><creator>Papageorgiou, Theodore</creator><general>Wiley</general><general>Blackwell Publishing Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>202003</creationdate><title>GEOGRAPHY, TRANSPORTATION, AND ENDOGENOUS TRADE COSTS</title><author>Brancaccio, Giulia ; Kalouptsidi, Myrto ; Papageorgiou, Theodore</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c4601-dc11facdc53b963f6bae134cf589d8b07d7e5515135a5fe35eefd052d36985513</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2020</creationdate><topic>Comparative studies</topic><topic>Endogenous</topic><topic>Equilibrium</topic><topic>Geography</topic><topic>import‐export complementarity</topic><topic>Infrastructure</topic><topic>International trade</topic><topic>maritime infrastructure</topic><topic>matching function estimation</topic><topic>network effects</topic><topic>Policy analysis</topic><topic>Prices</topic><topic>shipping</topic><topic>Shipping industry</topic><topic>trade costs</topic><topic>trade elasticity</topic><topic>Trade flows</topic><topic>trade imbalances</topic><topic>Transportation</topic><topic>Transportation industry</topic><topic>Transportation services</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Brancaccio, Giulia</creatorcontrib><creatorcontrib>Kalouptsidi, Myrto</creatorcontrib><creatorcontrib>Papageorgiou, Theodore</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Econometrica</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Brancaccio, Giulia</au><au>Kalouptsidi, Myrto</au><au>Papageorgiou, Theodore</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>GEOGRAPHY, TRANSPORTATION, AND ENDOGENOUS TRADE COSTS</atitle><jtitle>Econometrica</jtitle><date>2020-03</date><risdate>2020</risdate><volume>88</volume><issue>2</issue><spage>657</spage><epage>691</epage><pages>657-691</pages><issn>0012-9682</issn><eissn>1468-0262</eissn><abstract>In this paper, we study the role of the transportation sector in world trade. We build a spatial model that centers on the interaction of the market for (oceanic) transportation services and the market for world trade in goods. The model delivers equilibrium trade flows, as well as equilibrium trade costs (shipping prices). Using detailed data on vessel movements and shipping prices, we document novel facts about shipping patterns; we then flexibly estimate our model. We use this setup to demonstrate that the transportation sector (i) attenuates differences in the comparative advantage across countries; (ii) generates network effects in trade costs; and (iii) dampens the impact of shocks on trade flows. These three mechanisms reveal a new role for geography in international trade that was previously concealed by the frequently-used assumption of exogenous trade costs. Finally, we illustrate how our setup can be used for policy analysis by evaluating the impact of future and existing infrastructure projects (e.g., Northwest Passage, Panama Canal).</abstract><cop>Evanston</cop><pub>Wiley</pub><doi>10.3982/ecta15455</doi><tpages>35</tpages></addata></record> |
fulltext | fulltext |
identifier | ISSN: 0012-9682 |
ispartof | Econometrica, 2020-03, Vol.88 (2), p.657-691 |
issn | 0012-9682 1468-0262 |
language | eng |
recordid | cdi_proquest_journals_2379635340 |
source | Wiley Online Library; JSTOR; JSTOR Mathematics & Statistics Collection |
subjects | Comparative studies Endogenous Equilibrium Geography import‐export complementarity Infrastructure International trade maritime infrastructure matching function estimation network effects Policy analysis Prices shipping Shipping industry trade costs trade elasticity Trade flows trade imbalances Transportation Transportation industry Transportation services |
title | GEOGRAPHY, TRANSPORTATION, AND ENDOGENOUS TRADE COSTS |
url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-10T16%3A05%3A04IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-jstor_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=GEOGRAPHY,%20TRANSPORTATION,%20AND%20ENDOGENOUS%20TRADE%20COSTS&rft.jtitle=Econometrica&rft.au=Brancaccio,%20Giulia&rft.date=2020-03&rft.volume=88&rft.issue=2&rft.spage=657&rft.epage=691&rft.pages=657-691&rft.issn=0012-9682&rft.eissn=1468-0262&rft_id=info:doi/10.3982/ecta15455&rft_dat=%3Cjstor_proqu%3E48584196%3C/jstor_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2379635340&rft_id=info:pmid/&rft_jstor_id=48584196&rfr_iscdi=true |