The World is Not Yet Flat: Transport Costs Matter !

55 Pages Posted: 11 Nov 2016

See all articles by Kristian Behrens

Kristian Behrens

University of Quebec at Montreal (UQAM) - Department of Economics

W. Mark Brown

Statistics Canada

Theophile Bougna

World Bank - Development Research Group (DECRG)

Date Written: October 17, 2016

Abstract

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.

Keywords: Economic Geography, International Trade and Trade Rules, General Manufacturing, Construction Industry

Suggested Citation

Behrens, Kristian and Brown, W. Mark and Bougna, Theophile, The World is Not Yet Flat: Transport Costs Matter ! (October 17, 2016). World Bank Policy Research Working Paper No. 7862, Available at SSRN: https://ssrn.com/abstract=2867622

Kristian Behrens (Contact Author)

University of Quebec at Montreal (UQAM) - Department of Economics ( email )

P.O. Box 8888, Downtown Station
Montreal, Quebec H3C 3P8
Canada

W. Mark Brown

Statistics Canada ( email )

Ottawa, Ontario
Canada

Theophile Bougna

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
+1 202-458-4105 (Phone)
+1-202-522-2714 (Fax)

HOME PAGE: http://https://sites.google.com/site/bougnatheophile/

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