The World is not Yet Flat Transport Costs Matter!
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 geograph...
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| Other Authors: | , |
| Format: | eBook |
| Language: | English |
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Washington, D.C
The World Bank
2016
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| Series: | World Bank E-Library Archive
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| Collection: | World Bank E-Library Archive - Collection details see MPG.ReNa |
| Summary: | 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 |
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| Physical Description: | 55 p |