The world is not yet flat: Transport costs matter!

Kristian Behrens (), Theophile Bougna and W. Mark Brown

No 10356, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We provide evidence for the effects of changes in transport costs, international trade exposure, and input-output linkages on the geographical concentration of Canadian manufacturing industries. Increasing transport costs, stronger import competition, and the spreading out of upstream suppliers and downstream customers are all strongly associated with declining geographical concentration of industries. The effects are large: changes in trucking rates, in import exposure, and in access to intermediate inputs explain between 20% and 60% of the observed decline in spatial concentration over the 1992?2008 period.

Keywords: Geographical concentration; Transport costs; International trade exposure; Input-output linkages; Trucking rates (search for similar items in EconPapers)
JEL-codes: C23 L60 R12 (search for similar items in EconPapers)
Date: 2015-01
New Economics Papers: this item is included in nep-geo, nep-int, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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