Entrepôt: Hubs, Scale, and Trade Costs
Entrepôts are hubs that facilitate trade between various origins and destinations. We study the role these hubs, and the networks they form, play in international trade. Using novel data, we trace the paths of containerized goods entering the United States. We show that the majority of trade is indi...
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Munich: Center for Economic Studies and ifo Institute (CESifo)
2020
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fttriple:oai:gotriple.eu:oai:econstor.eu:10419/216595 2023-05-15T15:03:23+02:00 Entrepôt: Hubs, Scale, and Trade Costs Ganapati, Sharat Wong, Woan Foong Ziv, Oren 2020-01-01 http://hdl.handle.net/10419/216595 en eng Munich: Center for Economic Studies and ifo Institute (CESifo) gbv-ppn:1694305007 RePec:ces:ceswps:_8199 http://hdl.handle.net/10419/216595 other ddc:330 trade costs scale hubs transport costs transportation networks international trade shipping scipo eco Journal Article https://vocabularies.coar-repositories.org/resource_types/c_6501/ 2020 fttriple 2023-01-22T19:33:03Z Entrepôts are hubs that facilitate trade between various origins and destinations. We study the role these hubs, and the networks they form, play in international trade. Using novel data, we trace the paths of containerized goods entering the United States. We show that the majority of trade is indirect and sent through a small number of entrepôts, resulting in lower transport costs through scale economies by using larger ships. We build a model of endogenous entrepôt formation incorporating route choice by exporters within a Ricardian setting. We use the model to estimate trade costs on each shipping leg and develop a geography-based instrument to estimate a leg-level scale elasticity. Counterfactuals opening the Arctic Passage and Brexit quantify the effects of both network spillovers and scale economies. We find that spillovers from the transportation network doubles baseline welfare gains, with scale economies further tripling them. Article in Journal/Newspaper Arctic Unknown Arctic |
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English |
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ddc:330 trade costs scale hubs transport costs transportation networks international trade shipping scipo eco |
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ddc:330 trade costs scale hubs transport costs transportation networks international trade shipping scipo eco Ganapati, Sharat Wong, Woan Foong Ziv, Oren Entrepôt: Hubs, Scale, and Trade Costs |
topic_facet |
ddc:330 trade costs scale hubs transport costs transportation networks international trade shipping scipo eco |
description |
Entrepôts are hubs that facilitate trade between various origins and destinations. We study the role these hubs, and the networks they form, play in international trade. Using novel data, we trace the paths of containerized goods entering the United States. We show that the majority of trade is indirect and sent through a small number of entrepôts, resulting in lower transport costs through scale economies by using larger ships. We build a model of endogenous entrepôt formation incorporating route choice by exporters within a Ricardian setting. We use the model to estimate trade costs on each shipping leg and develop a geography-based instrument to estimate a leg-level scale elasticity. Counterfactuals opening the Arctic Passage and Brexit quantify the effects of both network spillovers and scale economies. We find that spillovers from the transportation network doubles baseline welfare gains, with scale economies further tripling them. |
format |
Article in Journal/Newspaper |
author |
Ganapati, Sharat Wong, Woan Foong Ziv, Oren |
author_facet |
Ganapati, Sharat Wong, Woan Foong Ziv, Oren |
author_sort |
Ganapati, Sharat |
title |
Entrepôt: Hubs, Scale, and Trade Costs |
title_short |
Entrepôt: Hubs, Scale, and Trade Costs |
title_full |
Entrepôt: Hubs, Scale, and Trade Costs |
title_fullStr |
Entrepôt: Hubs, Scale, and Trade Costs |
title_full_unstemmed |
Entrepôt: Hubs, Scale, and Trade Costs |
title_sort |
entrepôt: hubs, scale, and trade costs |
publisher |
Munich: Center for Economic Studies and ifo Institute (CESifo) |
publishDate |
2020 |
url |
http://hdl.handle.net/10419/216595 |
geographic |
Arctic |
geographic_facet |
Arctic |
genre |
Arctic |
genre_facet |
Arctic |
op_relation |
gbv-ppn:1694305007 RePec:ces:ceswps:_8199 http://hdl.handle.net/10419/216595 |
op_rights |
other |
_version_ |
1766335248955604992 |