scholarly journals TRANSPORT COSTS AND INTERNATIONAL TRADE

2018 ◽  
pp. 159-160
Keyword(s):  
International Trade ◽  
Transport Costs

scholarly journals External Economies and International Trade Redux: Comment*

2013 ◽  
Vol 128 (4) ◽  
pp. 1895-1905 ◽  
Author(s):  
Gary Lyn ◽  
Andrés Rodríguez-Clare
Keyword(s):  
International Trade ◽  
Multiple Equilibria ◽  
Mixed Strategy ◽  
Equilibrium Analysis ◽  
Perfect Competition ◽  
Transport Costs ◽  
Trade Patterns ◽  
Strategy Equilibrium ◽  
Pure Strategies ◽  
Alternative Set

Abstract Recently, Gene Grossman and Esteban Rossi-Hansberg (GRH; “External Economies and International Trade: Redux,” Quarterly Journal of Economics 125 [2010], 829–858) proposed a novel way to think about the implications of international trade in the presence of national external economies at the industry level. Instead of perfect competition and two industries, GRH assume Bertrand competition and a continuum of industries. GRH conclude that the equilibrium is unique if transport costs are low, that there is no trade for high transport costs, and that there is no equilibrium in pure strategies when transport costs are intermediate. In this note we reexamine the equilibrium analysis under different transport costs for a single industry (partial equilibrium) version of GRH’s model. We confirm many of GRH’s results, but also find that there are circumstances under which there are multiple equilibria, including equilibria in which trade patterns run counter to “natural” comparative advantage, and also find that there is a profitable deviation to the mixed-strategy equilibrium postulated by GRH for intermediate trading costs. We propose an alternative set of strategies for this case and establish that they constitute an equilibrium.

scholarly journals Transportation Costs and International Trade in the Second Era of Globalization

2007 ◽  
Vol 21 (3) ◽  
pp. 131-154 ◽  
Author(s):  
David Hummels
Keyword(s):  
Time Series ◽  
International Trade ◽  
Significant Rise ◽  
Transportation Costs ◽  
Transport Costs ◽  
Ocean Shipping ◽  
Technological Advances ◽  
Shipping Costs ◽  
Order Of Magnitude ◽  
Trade Growth

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.

Can Multistage Production Explain the Home Bias in Trade?

2010 ◽  
Vol 100 (1) ◽  
pp. 364-393 ◽  
Author(s):  
Kei-Mu Yi
Keyword(s):  
International Trade ◽  
Home Bias ◽  
Trade Costs ◽  
Significant Fraction ◽  
Empirical Literature ◽  
Vertical Specialization ◽  
Border Effect ◽  
Transport Costs ◽  
Production Stage ◽  
Multistage Production

A large empirical literature finds that there is too little international trade and too much intranational trade to be rationalized by observed international trade costs, such as tariffs and transport costs. This paper investigates whether a model in which the nature of production can change in response to trade costs—a framework with multistage production—can better explain the home bias in trade. The calibrated model can explain about two-fifths of the Canada border effect, about two-and-one-half times that of a model with one production stage. The model also explains a significant fraction of Canada-US “back-and-forth,” or vertical specialization, trade. (JEL F11, F13, F14)

Some Paradoxes of Transport Costs in International Trade

1985 ◽  
Vol 51 (4) ◽  
pp. 983 ◽  
Author(s):  
F. R. Casas ◽  
E. Kwan Choi
Keyword(s):  
International Trade ◽  
Transport Costs

scholarly journals Las condiciones de entrega en el comercio exterior español

2020 ◽  
Vol 31 (1) ◽  
pp. 249
Author(s):  
Ignacio Del Rosal Fernández
Keyword(s):  
International Trade ◽  
Transport Cost ◽  
Binary Response ◽  
Response Model ◽  
Economic Literature ◽  
Transport Costs ◽  
Binary Response Model ◽  
Weight Value ◽  
Per Capita

The terms of delivery in international trade, summarized in the Incoterms, have rarely been studied in the economic literature on transport costs. In this paper we present a first approach to study the use of Incoterms in the Spanish international trade, using the Estadística de Comercio Exterior. Besides showing the main trends on the use of Incoterms by Spanish exporters and importers, a binary response model is estimated with a dependent variable that distinguish if the seller deals with the main transport cost. We have found that distance, rent per capita, and weight/value ratio can influence the choice of Incoterms.

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