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GTAP Resources: Resource Display

GTAP Resource #7544

"Geography, Transport and the Composition of Trade"
by Hillberry, Russell, Manuel Jimenez and Bilgehan Karabay


Abstract
We develop a general equilibrium model of international trade and find support for it empirically. In the model a global transport sector allocates a fixed stock of shipping capital across bilateral routes. Sectors vary in the intensity in which they use transport capital. With intuition matching that of von Thunen’s model of regional agricultural specialization around an exogenous city, our model predicts that geographically central/large countries specialize in transport-intensive sectors, while remote regions specialize in goods that are less transport-intensive. The model improves on von Thunen’s because it is a complete general equilibrium. Our empirical results demonstrate that larger and more central regions specialize in products that rely on air shipment and shipment on containerized vessels. Remote regions export products that rely on less costly forms of shipping capital (e.g. bulk vessels). The results suggest an important potential constraint on remote regions’ ability to grow by producing increasingly complex goods.


Resource Details (Export Citation) GTAP Keywords
Category: 2025 Conference Paper
Status: Not published
By/In: Presented during the 28th Annual Conference on Global Economic Analysis (Kigali, Rwanda)
Date: 2025
Version: 1
Created: Hillberry, R. (4/15/2025)
Updated: Hillberry, R. (4/15/2025)
Visits: 33
- Transportation
- Economic geography
- Global


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