Transportation Costs and the Great Divergence

20 Pages Posted: 15 May 2014

See all articles by Leonid V. Azarnert

Leonid V. Azarnert

National Research University Higher School of Economics

Date Written: April 14, 2014

Abstract

This work shows the asymmetric effect of the reduction in transportation costs across different sectors in the process of the Great Divergence. Specifically, the analysis indicates that reductions in transportation costs of industrial goods enhance convergence of the growth rates of trading economies. In contrast, reductions in transportation costs of non-industrial goods contribute to a further divergence across countries.

Keywords: international trade, trade costs, transportation revolution, fertility, economic growth

JEL Classification: F110, F430, J100, N300, O400

Suggested Citation

Azarnert, Leonid V., Transportation Costs and the Great Divergence (April 14, 2014). CESifo Working Paper Series No. 4766, Available at SSRN: https://ssrn.com/abstract=2436853 or http://dx.doi.org/10.2139/ssrn.2436853

Leonid V. Azarnert (Contact Author)

National Research University Higher School of Economics ( email )

Soyza Pechatnikov str., 15
St. Petersburg, 190068
Russia

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