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Transportation Costs and the Great Divergence

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  • Leonid V. Azarnert

Abstract

This work shows the asymmetric effect of the reduction in transportation costs across different sectors in the process of the Great Divergence. Specifically, the analysis indicates that reductions in transportation costs of industrial goods enhance convergence of the growth rates of trading economies. In contrast, reductions in transportation costs of non-industrial goods contribute to a further divergence across countries.

Suggested Citation

  • Leonid V. Azarnert, 2014. "Transportation Costs and the Great Divergence," CESifo Working Paper Series 4766, CESifo.
    • Handle: RePEc:ces:ceswps:_4766
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    13. Azarnert, Leonid V., 2016. "Transportation Costs And The Great Divergence," Macroeconomic Dynamics, Cambridge University Press, vol. 20(1), pages 214-228, January.
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    Cited by:

    1. Azarnert, Leonid V., 2016. "Transportation Costs And The Great Divergence," Macroeconomic Dynamics, Cambridge University Press, vol. 20(1), pages 214-228, January.
    2. Lin Zhu & Li Wu & Xiran Xu & Xinyu Chen, 2024. "Exploring Pathways for Stimulating Cultural Services in Rural Ecosystems through Experiential Learning Education," Sustainability, MDPI, vol. 16(18), pages 1-13, September.
    3. Leonid V Azarnert, 2023. "Population sorting and human capital accumulation," Oxford Economic Papers, Oxford University Press, vol. 75(3), pages 780-801.
    4. Pingkuo Liu & Jiahao Wu, 2023. "Game Analysis on Energy Enterprises’ Digital Transformation—Strategic Simulation for Guiding Role, Leading Role and Following Role," Sustainability, MDPI, vol. 15(13), pages 1-33, June.
    5. Azarnert, Leonid V., 2018. "Trade, Luxury Goods, And A Growth-Enhancing Tariff," Macroeconomic Dynamics, Cambridge University Press, vol. 22(6), pages 1462-1474, September.
    6. Chao Wang & Wenyu Zhang & Bing Li, 2023. "Analysis of Country Economic Growth Based on Industries Chain Position," Sustainability, MDPI, vol. 15(21), pages 1-15, November.

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    More about this item

    Keywords

    international trade; trade costs; transportation revolution; fertility; economic growth;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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