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Paving the Road to Export: Assessing the Trade Impact of Road Quality

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  • Juan Blyde

Abstract

Assessing the trade impacts of domestic transport costs is data demanding and analyses that examine the effects of road quality, a critical aspect in regional and public policy, practically do not exist in the international trade literature. The few studies available rely mostly on distance-based measures as proxies of transport costs which impede analyzing the trade effects of transport-infrastructure improvements. In this paper, we combine highly disaggregated records of export flows with detailed geo-referenced information of the Colombian transport network, including its road quality, as well as real measures of transport costs of shipping goods within the country to measure the trade impacts of improving road quality. We find that the trade effects of improvements in road quality are relatively small on average; however, there is considerable heterogeneity in the magnitude of the effects. We show that longer routes have larger shares of their roads in poor conditions; accordingly, the trade impacts of shipments originated in remote regions are found to be quite substantial.

Suggested Citation

  • Juan Blyde, 2013. "Paving the Road to Export: Assessing the Trade Impact of Road Quality," International Economic Journal, Taylor & Francis Journals, vol. 27(4), pages 663-681, December.
    • Handle: RePEc:taf:intecj:v:27:y:2013:i:4:p:663-681
    DOI: 10.1080/10168737.2012.733721
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    1. Juan Blyde & Gonzalo Iberti, 2014. "A Better Pathway to Export: How the Quality of Road Infrastructure Affects Export Performance," The International Trade Journal, Taylor & Francis Journals, vol. 28(1), pages 3-22, March.
    2. Barzin, Samira & D'Costa, Sabine & Graham, Daniel J., 2018. "A pseudo – panel approach to estimating dynamic effects of road infrastructure on firm performance in a developing country context," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 20-34.
    3. Xu, Hangtian, 2016. "Domestic railroad infrastructure and exports: Evidence from the Silk Route," China Economic Review, Elsevier, vol. 41(C), pages 129-147.
    4. Coşar, A. Kerem & Demir, Banu, 2016. "Domestic road infrastructure and international trade: Evidence from Turkey," Journal of Development Economics, Elsevier, vol. 118(C), pages 232-244.
    5. Samira Barzin & Sabine D'Costa & Daniel Graham, 2016. "A Pseudo-Panel Approach to Estimating Dynamic Effects of Road Infrastructure Provision on Firm Performance in a Developing Country Context," Working Papers 69, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    6. Ng, Choy Peng & Law, Teik Hua & Wong, Shaw Voon & Kulanthayan, S., 2017. "Relative improvements in road mobility as compared to improvements in road accessibility and economic growth: A cross-country analysis," Transport Policy, Elsevier, vol. 60(C), pages 24-33.

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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