NDLI: Investing in Port Infrastructure to Lower Trade Costs in East Asia

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Investing in Port Infrastructure to Lower Trade Costs in East Asia

Content Provider	Directory of Open Access Journals (DOAJ)
Author	Kazutomo Abe John S. Wilson
Abstract	We examine how port infrastructure affects trade and role of transport costs in driving exports and imports for East Asia. Existing studies use survey indexes to explain transport costs. These do not link investment in port infrastructure to transport costs. We include in our estimates a variable to represent the congestion of the ports to explain the transport costs. We find that the port congestion has significantly increased the transport costs from East Asia to the United States. Our analysis suggests that increase in port capacity by 10 percent could cut transport cost in East Asia by up to three percent. This translates into a 0.3 to 0.5 percent across-the-board tariff cut.
Related Links	http://dx.doi.org/10.11644/KIEP.JEAI.2011.15.2.228
ISSN	25081640
DOI	10.11644/KIEP.JEAI.2011.15.2.228
Journal	East Asian Economic Review
Issue Number	2
Volume Number	15
e-ISSN	25081667
Language	English
Publisher	Korea Institute for International Economic Policy
Publisher Date	2011-01-01
Publisher Place	Korea, Republic of
Access Restriction	Open
Subject Keyword	Economics As a Science International Trade Trade Costs East Asia Asean China Trade Facilitation Infrastructure Gravity Model Economics as a science Science
Content Type	Text
Resource Type	Article
Subject	Chemistry Physics and Astronomy Economics, Econometrics and Finance Mathematics Agricultural and Biological Sciences

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