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How Far Goods Travel: Global Transport and Supply Chains from 1965–2020

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  • Sharat Ganapati
  • Woan Foong Wong

Abstract

This paper considers the evolution of global transportation usage over the past half century and its implications for supply chains. Transportation usage has more than doubled as costs decreased by a third. Participation of emerging economies in world trade and longer-distance trade between countries contribute to this usage increase, thereby encouraging longer supply chains. We discuss technological advances over this period, and their interactions with endogenous responses from transportation costs and supply chain linkages. Supply chains involving more countries and longer distances are reflective of reliable and efficient transportation, but are also more exposed to disruptions, highlighting the importance of considering the interconnectedness of transportation and supply chains in policymaking and future work.

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  • Sharat Ganapati & Woan Foong Wong, 2023. "How Far Goods Travel: Global Transport and Supply Chains from 1965–2020," Journal of Economic Perspectives, American Economic Association, vol. 37(3), pages 3-30, Summer.
    • Handle: RePEc:aea:jecper:v:37:y:2023:i:3:p:3-30
    DOI: 10.1257/jep.37.3.3
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    1. George Alessandria & Joseph P. Kaboski & Virgiliu Midrigan, 2010. "Inventories, Lumpy Trade, and Large Devaluations," American Economic Review, American Economic Association, vol. 100(5), pages 2304-2339, December.
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    Cited by:

    1. Baier, Scott & Standaert, Samuel, 2024. "Gravity, globalization and time-varying heterogeneity," European Economic Review, Elsevier, vol. 163(C).

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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