Transportation Costs and the Great Divergence
20 Pages Posted: 15 May 2014
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: 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
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