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Transportation Costs and International Trade in the Second Era of Globalization
Abstract
While the precise causes of postwar trade growth are not well understood, declines in transport costs top the lists of usual suspects. However, there is remarkably little systematic evidence documenting the decline. This paper brings to bear an eclectic mix of data in order to provide a detailed accounting of the time-series pattern of shipping costs. The ad-valorem impact of ocean shipping costs is not much lower today than in the 1950s, with technological advances largely trumped by adverse cost shocks. In contrast, air shipping costs have dropped an order of magnitude, and airborne trade has grown rapidly as a result. As a result, international trade has also experienced a significant rise in speed.
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“the 1980s and 1990s also witnessed technological developments that significantly reduced the quality -and time -adjusted costs of transporting goods across countries, in large part due to the increased reliance on air freight shipping (see Hummels, 2007).”
From De-Globalisation? Global Value Chains in the Post-COVID-19 Age (2020) · cites this paper as Hummels, 2007
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Citations
Cites
Ocean Freight Rates and Productivity, 1740–1913: The Primacy of Mechanical Invention Reaffirmed
Harley, C. K. (1988) · The Journal of Economic History · doi:10.1017/s0022050700006641 · Cited by 340
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Cited by
Sorted by citations
De-Globalisation? Global Value Chains in the Post-COVID-19 Age
Antràs, P. (2020) · doi:10.3386/w28115 · Cited by 376
Heterogeneous effects of economic integration agreements
Baier, S. L., Bergstrand, J. H., & Clance, M. W. (2018) · Journal of Development Economics · doi:10.1016/j.jdeveco.2018.08.014 · Cited by 122
Metadata
- Authors
- Hummels, D.
- Affiliations
- Purdue University, West Lafayette, Indiana.
- Venue
- Journal of Economic Perspectives
- Publisher
- American Economic Association
- Published
- 2007-07-01
- Volume
- 21
- Issue
- 3
- Pages
- 131-154
- ISSN
- 0895-3309
- Cited by
- 841
- References
- 1
- Language
- en
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