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International Transport costs: New Findings from modeling additive costs

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Date
2018
Publisher city
Paris
Publisher
CEPII
Collection title
CEPII Working Paper
Collection Id
2018-10
Link to item file
http://www.cepii.fr/CEPII/fr/publications/wp/abstract.asp?NoDoc=11638
Dewey
Economie internationale
Sujet
Transport Costs Estimates; Non-linear Econometrics; Additive Costs; Trade Composition Effects
JEL code
R.R4.R40; N.N7.N70; F.F1.F14
URI
https://basepub.dauphine.fr/handle/123456789/17928
Collections
  • LEDa : Publications
Metadata
Show full item record
Author
Daudin, Guillaume
12772 Développement, institutions et analyses de long terme [DIAL]
163511 Laboratoire d'Economie de Dauphine [LEDa]
Héricourt, Jérôme
39083 Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
413157 Lille économie management - UMR 9221 [LEM]
Patureau, Lise
status unknown
Type
Document de travail / Working paper
Item number of pages
51
Abstract (EN)
This paper investigates the pattern of international transport costs over time, using information contained in the US imports flows over 1974-2013. First, we document the importance of the per-unit (additive) component of transport costs. We thus find that additive costs are quantitatively sizable, representing between one third and one half of overall transport costs. Second, we identify the respective roles of the reduction in "pure'' transport costs and trade composition effects in the downward trend of international transport costs, in the same spirit as Hummels (2007). Unlike him, we find that trade composition effects do not matter much and, when they do, they tend to amplify (rather than reduce) the decrease in pure transport costs. Importantly, this difference of results can be attributed to the new way of modeling the per-unit component of transport costs we offer. In both aspects, our results point to the importance of the additive component in accounting for international transport costs.

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