Domestic road infrastructure and international trade

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1、JournalofDevelopmentEconomics118(2016)232–244ContentslistsavailableatScienceDirectJournalofDevelopmentEconomicsjournalhomepage:www.elsevier.com/locate/devecDomesticroadinfrastructureandinternationaltrade:EvidencefromTurkey☆a,⁎,BanuDemirbA.KeremCoşaraSt

2、ockholmSchoolofEconomics,DepartmentofEconomics,SwedenbBilkentUniversity,DepartmentofEconomics,TurkeyarticleinfoabstractArticlehistory:Drawingonthelarge-scalepublicinvestmentinroadsundertakeninTurkeyduringthe2000s,thispapercontrib-Received22January2015u

3、testoourunderstandingofhowinternaltransportationinfrastructureaffectsregionalaccesstointernationalReceivedinrevisedform16September2015markets.UsingdataoninternationaltradeofTurkishprovincesandthechangeinthecapacityoftheroadsAccepted3October2015connecti

4、ngthemtotheinternationalgatewaysofthecountry,weestimatethedistanceelasticityoftradeasso-Availableonline22October2015ciatedwithroadsofvaryingcapacity.Threekeyresultsemerge.First,thecostofanaverageshipmentoverahigh-capacityexpresswayisabout70%lowerthanit

5、isoversingle-laneroads.Second,thepresentvalueofa10-yearKeywords:Internationaltradestreamoftradeflowsgeneratedbyaone-dollarinvestmentinroadinfrastructurerangesbetween$0.7and$2.MarketaccessThird,thereductionintransportationcostsisgreaterthemoretransportat

6、ion-sensitiveanindustryis.Totheex-Transportationinfrastructuretentthatefficientlogisticsenablecountriestotakepartinglobalsupplychainsandexploittheircomparativead-Time-sensitiveindustriesvantages,ourfindingshaveimportantdevelopmentalimplications.©2015Else

7、vierB.V.Allrightsreserved.1.Introductioninfrastructurewhichisclearlyimportantindeterminingdomesticfreightcostsbesidesdistance.PoordomestictransportationinfrastructureindevelopingcountriesIntuitionandevidencesuggestthatthedomesticcomponentmayisoftencite

8、dasanimportantimpedimentforaccessinginternationalaccountforanonnegligiblepartoftheoverallcostofshippinggoodsmarkets.Yet,evidenceonhowamajorimprovementinthetransportacrossborders.Decomposingtheadvaloremtaxequivalentoftradenetworkofacount