Time as a trade barrier
Advanced Search
Select up to three search categories and corresponding keywords using the fields to the right. Refer to the Help section for more detailed instructions.

Search our Collections & Repository

For very narrow results

When looking for a specific result

Best used for discovery & interchangable words

Recommended to be used in conjunction with other fields

Dates
...

to

...
Document Data
Library
People
Clear All
...
Clear All

For additional assistance using the Custom Query please check out our Help Page

ROSA P serves as an archival repository of USDOT-published products including scientific findings, journal articles, guidelines, recommendations, or other information authored or co-authored by USDOT or funded partners. As a repository, ROSA P retains documents in their original published format to ensure public access to scientific information.
i

Time as a trade barrier



English
Details You May Also Like

Details:

  • Creators:
    Hummels, David
  • Corporate Contributors:
    Purdue University
  • Subject/TRT Terms:
  • Resource Type:
    Research Paper
  • Corporate Publisher:
    CIBERWeb
  • Abstract:
    International trade occurs in physical space and moving goods requires time. This paper examines the importance of time as a trade barrier, estimates the magnitude of time costs, and relates these to patterns of trade and the international organization of production. Estimates indicate that each additional day spent in transport reduces the probability that the US will source from that country by 1 ? 1.5 percent. Conditional on exporting country, estimates directly identify a willingness-to-pay for time savings using variation across exporters and commodities in the relative price / speed tradeoff for air and ocean shipping. Each day saved in shipping time is worth 0.8 percent ad-valorem for manufactured goods. Relative declines over time in air shipping prices make timesavings less expensive, providing a compelling explanation for aggregate trade growth, compositional effects in trade growth, as well as growth in time-intensive forms of integration such as vertical specialization. Specifically, the advent of fast transport (air shipping and faster ocean vessels) is equivalent to reducing tariffs on manufactured goods from 32% to 9% between 1950-1998. References, tables, 40 p.
  • Format:
    PDF
  • Collection(s):
  • Main Document Checksum:
  • Download URL:
  • File Type:
    Filetype[PDF-208.22 KB]

You May Also Like

Checkout today's featured content at rosap.ntl.bts.gov