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The Origins of Spatial Interaction

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Author Info
Keller, Wolfgang
Shiue, Carol Hua

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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.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4138.

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Date of creation: Dec 2003
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Handle: RePEc:cpr:ceprdp:4138

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Related research
Keywords: 18th century china; coastal transport; geography; R40; river transport; spatial autocorrelation; spatial econometrics; trade; transport costs;

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Harry Garretsen & Jolanda Peeters, 2007. "FDI and the Relevance of Spatial Linkages: do third country effects matter for Dutch FDI?," DNB Working Papers 162, Netherlands Central Bank, Research Department. [Downloadable!]
  2. Garretsen, Harry / Peeters, Jolanda, 2008. "FDI and the Relevance of Spatial Linkages: Do third Country Effects Matter for Dutch FDI?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Kukenova, Madina & Monteiro, Jose-Antonio, 2008. "Spatial Dynamic Panel Model and System GMM: A Monte Carlo Investigation," MPRA Paper 11569, University Library of Munich, Germany, revised Mar 2009. [Downloadable!]
    Other versions:
  4. Wolfgang Keller & Carol H. Shiue, 2004. "Market Integration and Economic Development: A Long-run Comparison," NBER Working Papers 10300, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Carol H. Shiue & Wolfgang Keller, 2004. "Markets in China and Europe on the Eve of the Industrial Revolution," NBER Working Papers 10778, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Harry Garretsen & Jolanda Peeters, 2009. "FDI and the relevance of spatial linkages: do third-country effects matter for Dutch FDI?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(2), pages 319-338, July. [Downloadable!] (restricted)
  7. Bruce A. Blonigen & Ronald B. Davies & Glen R. Waddell & Helen T. Naughton, 2004. "FDI in Space: Spatial Autoregressive Relationships in Foreign Direct Investment," NBER Working Papers 10939, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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