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Too Far to Export: Domestic Transport Costs and Regional Export Disparities in Latin America and the Caribbean

Author

Listed:
  • Mesquita Moreira, Mauricio
  • Blyde, Juan
  • Volpe, Christian
  • Molina, Danielken
Abstract
Driven by declining import tariffs, poor infrastructure and increasing specialization in transport-intensive goods, transport costs are arguably today’s most formidable obstacles to trade in Latin America and the Caribbean (LAC). However, little knowledge is available on their trade impacts in the region, both behind and beyond the border. This study, which is part of a broader IDB research effort to fill this gap, assesses the role of domestic transport costs (“factory-to-port”) in shaping the level and diversification of countries’ overall and subnational exports. The subnational dimension is particularly important given that LAC’s exports are heavily concentrated in a few municipalities. Resorting to a number of empirical strategies and using a novel database --which covers origin-destination and transport costs of municipal exports in five of the largest countries in the region (Brazil, Chile, Colombia, Mexico, and Peru)--the study shows that lower transport costs can have a significant impact, particularly on those municipalities that export the least.

Suggested Citation

  • Mesquita Moreira, Mauricio & Blyde, Juan & Volpe, Christian & Molina, Danielken, 2013. "Too Far to Export: Domestic Transport Costs and Regional Export Disparities in Latin America and the Caribbean," MPRA Paper 59736, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59736
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Nicole Jenne, 2013. "Whither the push and pull for integration: Taking stock of Latin America’s declaratory regionalism," RSCAS Working Papers 2013/82, European University Institute.
    2. Valenzuela-Klagges, Bárbara & Corvalán-Quiroz, Alejandro & Fuenzalida-O'Shee, Darcy, 2018. "Trade facilitation and its effects on Chile’s bilateral trade between 2006 and 2014," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    3. Christian Volpe Martincus, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 96856, February.
    4. Yasir Khan & Taimoor Hassan & Cai Shukai & Hana Oubaih & Muhammad Nisar Khan & Jawed Kootwal & Ubaid Ur Rahman Rehimi, 2022. "The nexus between infrastructure development, economic growth, foreign direct investment, and trade: an empirical investigation from China’s regional trade data," SN Business & Economics, Springer, vol. 2(7), pages 1-31, July.
    5. Grace Carolina GUEVARA-ROSERO, 2017. "The Effect of Trade on Agglomeration within Regions," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 75-97, March.
    6. World Bank Group, 2017. "The Russian Federation - An Exploratory Assessment of Transport Connectivity," World Bank Publications - Reports 30046, The World Bank Group.
    7. Tiller, Kara Carroll & Thill, Jean-Claude, 2017. "Spatial patterns of landside trade impedance in containerized South American exports," Journal of Transport Geography, Elsevier, vol. 58(C), pages 272-285.
    8. Vinícios Poloni Sant' Anna & Sérgio Kannebley Júnior, 2016. "Port Efficiency And Brazilian Exports: A Quantitative Assessment Of The Impact Of Port Procedures Time," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 125, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    9. Jaimovich, Esteban, 2019. "Roadways, input sourcing, and patterns of specialization," European Economic Review, Elsevier, vol. 120(C).
    10. Blyde, Juan S. & Volpe Martincus, Christian & Molina, Danielken, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 6668, November.
    11. Sebastian Sotelo, 2020. "Domestic Trade Frictions and Agriculture," Journal of Political Economy, University of Chicago Press, vol. 128(7), pages 2690-2738.
    12. Mateus Silva Chang, 2017. "Machinery production networks in Latin America: a quantity and quality analysis," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 26(1), pages 1-35, December.
    13. Xu, Yang & Yang, Xi, 2021. "Access to ports and the welfare gains from domestic transportation infrastructure," Journal of Urban Economics, Elsevier, vol. 126(C).
    14. Volpe Martincus, Christian, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 7994, November.
    15. repec:nbr:nberch:13947 is not listed on IDEAS
    16. Juan S. Blyde & Christian Volpe Martincus & Danielken Molina, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 86755 edited by Juan S. Blyde, February.

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    More about this item

    Keywords

    Trade; transport costs; Latin America;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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