Roads and Trade: Evidence from the US

57 Pages Posted: 19 Mar 2013

See all articles by Gilles Duranton

Gilles Duranton

University of Pennsylvania - Real Estate Department

Peter Morrow

University of Toronto

Matthew Turner

University of Toronto

Date Written: March 2013

Abstract

We estimate the effect of interstate highways on the level and composition of trade for us cities. Highways within cities have a large effect on the weight of city exports with an elasticity of approximately 0.5. We find little effect of highways on the total value of exports. Consistent with this, we find that cities with more highways specialize in sectors producing heavy goods.

Keywords: interstate highways, trade and specialisation, transport costs

JEL Classification: F14, R41, R49

Suggested Citation

Duranton, Gilles and Morrow, Peter and Turner, Matthew A., Roads and Trade: Evidence from the US (March 2013). CEPR Discussion Paper No. DP9393, Available at SSRN: https://ssrn.com/abstract=2235491

Gilles Duranton (Contact Author)

University of Pennsylvania - Real Estate Department ( email )

Philadelphia, PA 19104-6330
United States

Peter Morrow

University of Toronto ( email )

Matthew A. Turner

University of Toronto ( email )

Department of Economics
150 St. George Street
Toronto, Ontario M5S 3G7
Canada

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