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Regional and Temporal Variations in Transportation Costs for U.S. Imports from Canada

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  • Globerman, Steven
  • Storer, Paul

Abstract

This paper examines the behavior of transportation costs associated with U.S. imports from Canada. In particular, it evaluates whether transportation costs for U.S. imports from Canada increased in the post-9/11 period, thereby contributing to a “thickening” of the Canada-U.S. border. It also identifies whether changes in transportation costs varied across U.S. customs districts encompassing land ports along the Canada-U.S. border. The evidence indicates that an earlier declining trend in transportation costs noticeably decelerated in the post-2001 period. Furthermore, there was substantial variation in the rate of deceleration across the sample customs districts. The variation seems to be related to differential impacts of government policies across regions, such as “Trusted Trade” programs, rather than to changes in commodity import mixes or susceptibility of commodity import mixes to border disruptions.

Suggested Citation

  • Globerman, Steven & Storer, Paul, 2011. "Regional and Temporal Variations in Transportation Costs for U.S. Imports from Canada," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(2), pages 1-18.
    • Handle: RePEc:ags:jrapmc:133343
    DOI: 10.22004/ag.econ.133343
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
    2. Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72, January.
    3. Michael Hart, 2010. "A Matter of Trust: Expanding the Preclearance of Commerce between Canada and the United States," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 309, September.
    4. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
    5. Siew Hoon Lim & C.A. Knox Lovell, 2009. "Profit and productivity of US Class I railroads," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 423-442.
    6. Steven Globerman & Paul Storer, 2009. "Border Security and Canadian Exports to the United States: Evidence and Policy Implications," Canadian Public Policy, University of Toronto Press, vol. 35(2), pages 171-186, June.
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    Cited by:

    1. Smith, Matthew J. & Ray, Sayan Basu & Raymond, Aaron & Sienna, Micah & Lilly, Meredith B., 2018. "Long-term lessons on the effects of post-9/11 border thickening on cross-border trade between Canada and the United States: A systematic review," Transport Policy, Elsevier, vol. 72(C), pages 198-207.
    2. Thomas Fullerton & Adam Walke, 2014. "Homicides, exchange rates, and northern border retail activity in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 631-647, November.

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