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International Transport Costs: New Findings from Modeling Additive Costs
This working paper investigates the pattern of international transport costs over time, using information contained the US imports flows over 1974-2013. First, we document the importance of the per-unit (additive) component of transport costs, representing between one third and one half of overall transport costs. Second, unlike Hummels (2007), we find that trade composition effects do not matter much in explaining transport costs dynamics and, when they do, they tend to amplify (rather than reduce) the decrease in pure transport costs. In both aspects, our results point to the importance of the additive component in accounting for international transport costs.
Guillaume Daudin, Jérôme Héricourt & Lise Patureau >>>
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ISSN: 1255-7072
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