All Aboard: The Effects of Port Development

81 Pages Posted: 1 Dec 2020 Last revised: 31 May 2023

See all articles by César Ducruet

César Ducruet

CNRS

Réka Juhász

University of British Columbia (UBC); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Dávid Krisztián Nagy

Princeton University

Claudia Steinwender

Ludwig Maximilian University of Munich (LMU)

Date Written: November 2020

Abstract

Seaports facilitate the fast flow of goods across space, but ports also entail local costs borne by host cities. We use the introduction of containerized shipping to explore the effects of port development. At the local level, we find that seaport development increases city population by making a city more attractive, but this market access effect is offset by costs which make the city less attractive. At the aggregate level, we find that the local costs associated with port development are heterogeneous across cities and reduce aggregate welfare gains, which however are still positive and substantial.

Suggested Citation

Ducruet, César and Juhász, Réka and Nagy, Dávid Krisztián and Steinwender, Claudia, All Aboard: The Effects of Port Development (November 2020). NBER Working Paper No. w28148, Available at SSRN: https://ssrn.com/abstract=3739645

Réka Juhász

University of British Columbia (UBC) ( email )

2329 West Mall
Vancouver, British Columbia BC V6T 1Z4
Canada

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Dávid Krisztián Nagy

Princeton University ( email )

22 Chambers Street
Princeton, NJ 08544-0708
United States

Claudia Steinwender

Ludwig Maximilian University of Munich (LMU) ( email )

Geschwister-Scholl-Platz 1
Munich, DE Bavaria 80539
Germany

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