Too Far to Export

October 1, 2013

This study assesses the role of domestic transport costs ("factory-to-port") in shaping the level and diversification of countries' overall and subnational exports. The subnational dimension is particularly important given that LAC's exports are heavily concentrated in a few municipalities. Resorting to a number of empirical strategies and using a novel database --which covers origin-destination and transport costs of municipal exports in five of the largest countries in the region (Brazil, Chile, Colombia, Mexico, and Peru)--the study shows that lower transport costs can have a significant impact, particularly on those municipalities that export the least.

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Topics: TRADE FACILITATION INFRASTRUCTURE TRANSPORTATION COSTS REGIONAL INTEGRATION

Regions: LATIN AMERICA AND THE CARIBBEAN (LAC)

Authors: MAURICIO MESQUITA MOREIRA JUAN S. BLYDE CHRISTIAN MARTINCUS VOLPE DANIELKEN MOLINA

Publishing Institution: INTER-AMERICAN DEVELOPMENT BANK

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