Transportation costs and the great divergence

Leonid V. Azarnert

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

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 nonindustrial goods contribute to a further divergence across countries.

Original languageEnglish
Pages (from-to)214-228
Number of pages15
JournalMacroeconomic Dynamics
Volume20
Issue number1
DOIs
StatePublished - 16 Sep 2014

Keywords

  • Economic Growth
  • Fertility
  • International Trade
  • Trade Costs
  • Transportation Revolution

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