Roadways, input sourcing, and patterns of specialization

B-Tier
Journal: European Economic Review
Year: 2019
Volume: 120
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a model where the internal transport network facilitates the sourcing of intermediate goods from geographically diffuse locations. A denser internal transport network promotes thus the growth of industries that rely on a large variety of inputs. The model shows that heterogeneities in internal transport infrastructures can become a key factor in shaping comparative advantage and specialization. Evidence based on industry-level trade data grants support to the main prediction of the model: countries with denser road networks export relatively more in industries that exhibit broader input bases. We show that this correlation is robust to several possible confounding effects proposed by the literature, such as the impact of institutions on specialization in complex goods. Furthermore, we show that a similar correlation arises as well when the density of the local transport network is measured by the density of their internal waterways, and also when road density is instrumented with measures of terrain roughness.

Technical Details

RePEc Handle
repec:eee:eecrev:v:120:y:2019:i:c:s0014292119301771
Journal Field
General
Author Count
1
Added to Database
2026-01-25