Journal Article

Roads and Trade: Evidence from the US

Gilles Duranton, Peter M. Morrow and Matthew A. Turner

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 81, issue 2, pages 681-724
Published in print April 2014 | ISSN: 0034-6527
Published online April 2014 | e-ISSN: 1467-937X | DOI: https://dx.doi.org/10.1093/restud/rdt039
Roads and Trade: Evidence from the US

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We estimate the effect of interstate highways on the level and composition of trade for US cities. Highways within cities have a large effect on the weight of city exports with an elasticity of approximately 0.5. We find little effect of highways on the total value of exports. Consistent with this, we find that cities with more highways specialize in sectors producing heavy goods.

Keywords: Interstate highways; Transportation costs; Trade and Specialization.; F14; R41; R49

Journal Article.  22767 words.  Illustrated.

Subjects: International Trade ; Transportation Systems

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