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Transport Costs and Economic Integration in the Americas

Author

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  • Azita Amjadi
  • L. Alan Winters
  • Alexander Yeats

Abstract

We discuss three models from the literature in which transportation costs play a critical role in evaluating international economic integration. One considers costs on intra-bloc trade, one those of extra-bloc trade, and one the relativity of the two. We then examine estimates of the actual transportation costs on Latin American exports to the United States. These are significant - generally higher than trade barriers - and are higher on Latin American exports than European exports. The paper concludes that transportation costs do not provide a strong incentive for integration in the Americas, and that reducing such costs could be an important complement to integration.

Suggested Citation

  • Azita Amjadi & L. Alan Winters & Alexander Yeats, 1995. "Transport Costs and Economic Integration in the Americas," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 465-488, September.
    • Handle: RePEc:ses:arsjes:1995-iii-12
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    References listed on IDEAS

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    1. Haaland, J.I. & Wooton, I., 1991. "Market Integration, Competition, and Welfare," Papers 499, Stockholm - International Economic Studies.
    2. Robert E. Lipsey & Merle Yahr Weiss, 1974. "The Structure of Ocean Transport Charges," NBER Chapters, in: Explorations in Economic Research, Volume 1, Number 1, pages 162-193, National Bureau of Economic Research, Inc.
    3. Wonnacott, Paul & Wonnacott, Ronald, 1981. "Is Unilateral Tariff Reduction Preferable to a Customs Union? The Curious Case of the Missing Foreign Tariffs," American Economic Review, American Economic Association, vol. 71(4), pages 704-714, September.
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    Cited by:

    1. Foders, Federico, 1996. "MERCOSUR: A new approach to regional integration?," Kiel Working Papers 746, Kiel Institute for the World Economy (IfW Kiel).

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