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International transport costs: New findings from modeling additive costs

Daudin, Guillaume; Hericourt, Jérôme; Patureau, Lise (2022), International transport costs: New findings from modeling additive costs, Journal of Economic Geography, 05 May 2022, p. lbac007. 10.1093/jeg/lbac007

Type
Article accepté pour publication ou publié
Date
2022-05
Journal name
Journal of Economic Geography
Number
05 May 2022
Publisher
Oxford University Press
Pages
lbac007
Publication identifier
10.1093/jeg/lbac007
Metadata
Show full item record
Author(s)
Daudin, Guillaume cc
Développement, institutions et analyses de long terme [DIAL]
Observatoire français des conjonctures économiques (Sciences Po) [OFCE]
Laboratoire d'Economie de Dauphine [LEDa]
Hericourt, Jérôme
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Lille économie management - UMR 9221 [LEM]
Patureau, Lise
Laboratoire d'Economie de Dauphine [LEDa]
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.
Subjects / Keywords
Transport Costs Estimates; Non-linear Econometrics; Additive Costs; Trade Composition Effects
JEL
F14 - Empirical Studies of Trade
N70 - General, International, or Comparative
R40 - General

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