Transport Costs and Economic Integration in the Americas

Amjadi, Azita, Winters, L. Alan and Yeats, Alexander (1995) Transport Costs and Economic Integration in the Americas. Swiss Journal of Economics and Statistics, 131 (3). pp. 465-488. ISSN 0303-9692

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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.

Item Type: Article
Schools and Departments: University of Sussex Business School > Economics
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Depositing User: L.Alan Winters
Date Deposited: 06 Feb 2012 19:04
Last Modified: 27 Mar 2012 11:37
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