NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Global Trade and the Maritime Transport Revolution

David S. Jacks, Krishna Pendakur

NBER Working Paper No. 14139
Issued in June 2008
NBER Program(s):   DAE   ITI

What is the role of transport improvements in globalization? We argue that the nineteenth century is the ideal testing ground for this question: freight rates fell on average by 50% while global trade increased 400% from 1870 to 1913. We estimate the first indices of bilateral freight rates for the period and directly incorporate these into a standard gravity model. We also take the endogeneity of bilateral trade and freight rates seriously and propose an instrumental variables approach. The results are striking as we find no evidence that the maritime transport revolution was the primary driver of the late nineteenth century global trade boom. Rather, the most powerful forces driving the boom were those of income growth and convergence.

download in pdf format
   (232 K)

email paper

This paper is available as PDF (232 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14139

Published: David S Jacks & Krishna Pendakur, 2010. "Global Trade and the Maritime Transport Revolution," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 745-755, October.

Users who downloaded this paper also downloaded these:
Clark, Dollar, and Micco w10353 Port Efficiency, Maritime Transport Costs and Bilateral Trade
Meissner w9233 A New World Order: Explaining the Emergence of the Classical Gold Standard
Jacks, Meissner, and Novy w12602 Trade Costs in the First Wave of Globalization
Hummels, Lugovskyy, and Skiba w12914 The Trade Reducing Effects of Market Power in International Shipping
Blonigen and Wilson w12052 New Measures of Port Efficiency Using International Trade Data
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us