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Transport Costs and Economic Integration in the Americas

journal contribution
posted on 2023-06-07, 21:58 authored by Azita Amjadi, L. 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.

History

Publication status

  • Published

Journal

Swiss Journal of Economics and Statistics

ISSN

0303-9692

Issue

3

Volume

131

Page range

465-488

Pages

24.0

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2012-02-06

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