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Transport Costs and Economic Integration in the Americas
journal contributionposted on 2023-06-07, 21:58 authored by Azita Amjadi, L. Alan WintersL. Alan Winters, Alexander Yeats
We discuss three models from the literature in which transportation costs play a critical role in evaluating international economic integration. One considers costs on intra-bloc trade, one those of extra-bloc trade, and one the relativity of the two. We then examine estimates of the actual transportation costs on Latin American exports to the United States. These are significant - generally higher than trade barriers - and are higher on Latin American exports than European exports. The paper concludes that transportation costs do not provide a strong incentive for integration in the Americas, and that reducing such costs could be an important complement to integration.
JournalSwiss Journal of Economics and Statistics
Department affiliated with
- Economics Publications
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