The World is Not Yet Flat : Transport Costs Matter!
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 valore...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/10/26868018/world-not-yet-flat-transport-costs-matter http://hdl.handle.net/10986/25307 |
| Summary: | 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. |
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