Infrastructure’s Role in Lowering Asia’s Trade Costs
Show Less

Infrastructure’s Role in Lowering Asia’s Trade Costs

Building for Trade

Edited by Douglas H. Brooks and David Hummels

This book analyses and draws policy implications from infrastructure’s central role in lowering Asia’s trade costs.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 4: Empirical Estimates of Transportation Costs: Options for Enhancing Asia’s Trade

Prabir De


* Prabir De INTRODUCTION 1. The last few decades have seen significant changes in international economic integration. A growing number of researchers have started to reveal a long list of trade cost barriers that affect international economic integration. According to Anderson and van Wincoop, ‘The 170 per cent of “representative” trade costs in industrialized countries breaks down into 21 per cent transportation costs, 44 per cent border related trade barriers and 55 per cent retail and wholesale distribution costs’ (Anderson and van Wincoop, 2004, p. 692). What makes any study of trade costs in Asia significant is that the price of the vast majority of traded goods depends on many exogenous factors. On the one hand, Asia conducts increasingly higher trade, where higher trade costs push up the landed price of imports, and, on the other, Asia’s trade covers an increasingly large volume of intermediate goods, where expensive imports, resulting from higher trade costs, escalate the cost of production. The present chapter attempts to contribute to the empirical literature on the dynamics of Asia’s trade. By using direct and indirect evidence on trade barriers, it seeks to enhance understanding of trade costs in Asia.1 How are the Asian countries performing in reducing trade costs? Which barriers matter most – tariff or transport costs? Do inland transportation costs influence Asian trade much more significantly than international transportation costs? What do the estimates of freight rates look like across Asian countries? This chapter provides empirical evidence to show that...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.