The Origins of Spatial Interaction

Wolfgang Keller and Carol Shiue ()

No 4138, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Geography shapes economic outcomes in a major way. This Paper uses spatial empirical methods to detect and analyse trade patterns in a historical dataset on Chinese rice prices. Our results suggest that spatial features were important for the expansion of interregional trade. Geography dictates, first, over what distances trade was possible in different regions, because the costs of ship transport were considerably below those for land transport. Spatial features also influence the direction in which a trading network is expanding. Moreover, our analysis captures the impact of new trade routes both within and outside the trading areas. We also discuss the long-run implications this might have.

Keywords: Geography; Spatial autocorrelation; Spatial econometrics; 18th century china; Trade; Transport costs; River transport; Coastal transport; R40 (search for similar items in EconPapers)
JEL-codes: F10 O10 R10 (search for similar items in EconPapers)
Date: 2003-12
New Economics Papers: this item is included in nep-dev, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: The origin of spatial interaction (2007)
Working Paper: The Origins of Spatial Interaction (2003)
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