Roads and Trade: Evidence from the US

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Real Estate Papers
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interstate highways
transportation costs
trade and specialization
Economics
Real Estate
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Duranton, Gilles
Morrow, Peter M
Turner, Matthew A
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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.

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2014-01-01
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The Review of Economic Studies
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