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Diffusion of Containerization

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Abstract

This paper uses a newly constructed, comprehensive dataset to investigate the diffusion of containerization. The data show that country adoption is exceptionally fast while firm usage increases more slowly. To guide my empirical investigation, I build a multi-country trade model with endogenous adoption of a new transportation technology that is consistent with these facts. I then test empirically the predictions of the model and find that: (1) usage of containerization increases with firms' fixed costs and the size and average income of the container network; and (2) adoption depends on expected future usage, adoption costs, and trade with the United States, the first and largest user of containerization.

Suggested Citation

  • Gisela Rua, 2014. "Diffusion of Containerization," Finance and Economics Discussion Series 2014-88, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfe:2014-88
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    Cited by:

    1. Suguru Otani, 2024. "Industry Dynamics with Cartels: The Case of the Container Shipping Industry," Papers 2407.15147, arXiv.org.
    2. Jackson, Matthew O. & Nei, Stephen, 2014. "Networks of Military Alliances, Wars, and International Trade," Climate Change and Sustainable Development 172702, Fondazione Eni Enrico Mattei (FEEM).
    3. Suguru Otani, 2024. "Industry Dynamics with Cartels: The Case of the Container Shipping Industry," Discussion Paper Series DP2024-28, Research Institute for Economics & Business Administration, Kobe University.
    4. Ducruet, César & Juhász, Réka & Nagy, Dávid Krisztián & Steinwender, Claudia, 2024. "All aboard: The effects of port development," Journal of International Economics, Elsevier, vol. 151(C).
    5. Bernhofen, Daniel M. & El-Sahli, Zouheir & Kneller, Richard, 2016. "Estimating the effects of the container revolution on world trade," Journal of International Economics, Elsevier, vol. 98(C), pages 36-50.
    6. Daniel M. Bernhofen & Zouheir El‐Sahli & Richard Kneller, 2021. "The impact of technological change on new trade: Evidence from the container revolution," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 923-943, May.
    7. Thomas J. Holmes & Ethan Singer, 2017. "Indivisibilities in Distribution," Working Papers 739, Federal Reserve Bank of Minneapolis.
    8. Coşar, A. Kerem & Demir, Banu, 2018. "Shipping inside the box: Containerization and trade," Journal of International Economics, Elsevier, vol. 114(C), pages 331-345.
    9. Brooks, Leah & Gendron-Carrier, Nicolas & Rua, Gisela, 2021. "The local impact of containerization," Journal of Urban Economics, Elsevier, vol. 126(C).
    10. César Ducruet & Réka Juhász & David Krisztián Nagy & Claudia Steinwender, 2019. "All aboard: The aggregate effects of port development," Economics Working Papers 1708, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2022.
    11. Ulltveit-Moe, Karen Helene & Heiland, Inga & Moxnes, Andreas & Zi, Yuan, 2019. "Trade From Space: Shipping Networks and The Global Implications of Local Shocks," CEPR Discussion Papers 14193, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Globalization; transportation; trade; technology diffusion;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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