Arbeitspapier

Determinants of transport costs: Are they uniform across countries?

The author shows with pooled OLS estimations based on transport margins from international social accounting data that investments in improved road infrastructure have the potential to significantly reduce transport costs. However, this result can only be clearly confirmed for industrial countries and is of primary importance for production and transportation of agricultural goods. For developing and transition countries, in contrast, the author finds other determinants such as weather conditions to be more important in determining transport costs. A key variable, especially in these countries, is corruption. Very high corruption has the potential to prevent positive effects from road infrastructure on transport costs or to even reverse them. This paper contributes to the literature on infrastructure investment by introducing and applying an internationally comparable measure of transport costs which can be calculated for a large and growing number of countries. The author concludes that investments in transport infrastructure can have substantial positive effects especially on agricultural production and the efficient marketing of agricultural products but only if specific additional conditions are given.

Language
Englisch

Bibliographic citation
Series: Economics Discussion Papers ; No. 2012-54

Classification
Wirtschaft
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Macroeconomic Analyses of Economic Development
Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning
Subject
infrastructure
transport networks
transport costs
agriculture
public investment
development
Transportkosten
Verkehrsinvestition
Wirkungsanalyse
Agrarproduktion
Agrarmarkt
Landwirtschaftliche Entwicklung
Korruption
Entwicklungsländer

Event
Geistige Schöpfung
(who)
Schürenberg-Frosch, Hannah
Event
Veröffentlichung
(who)
Kiel Institute for the World Economy (IfW)
(where)
Kiel
(when)
2012

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schürenberg-Frosch, Hannah
  • Kiel Institute for the World Economy (IfW)

Time of origin

  • 2012

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