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All Aboard: The Effects of Port Development

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Listed:
  • César Ducruet
  • Réka Juhász
  • Dávid Krisztián Nagy
  • Claudia Steinwender

Abstract

Seaports facilitate the fast flow of goods across space, but ports also entail local costs borne by host cities. We use the introduction of containerized shipping to explore the effects of port development. At the local level, we find that seaport development increases city population by making a city more attractive, but this market access effect is offset by costs which make the city less attractive. At the aggregate level, we find that the local costs associated with port development are heterogeneous across cities and reduce aggregate welfare gains, which however are still positive and substantial.

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  • César Ducruet & Réka Juhász & Dávid Krisztián Nagy & Claudia Steinwender, 2020. "All Aboard: The Effects of Port Development," CESifo Working Paper Series 8721, CESifo.
    • Handle: RePEc:ces:ceswps:_8721
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    Cited by:

    1. Mounir Amdaoud & César Ducruet & Marc-Antoine Faure, 2021. "Port-city linkages and multi-level hinterlands: the case of France," Working Papers hal-04159734, HAL.
    2. Brooks, Leah & Gendron-Carrier, Nicolas & Rua, Gisela, 2021. "The local impact of containerization," Journal of Urban Economics, Elsevier, vol. 126(C).
    3. Ducruet, César & Itoh, Hidekazu, 2022. "The spatial determinants of innovation diffusion: Evidence from global shipping networks," Journal of Transport Geography, Elsevier, vol. 101(C).
    4. Maria Waldinger, 2024. "“Let them eat cake”: drought, peasant uprisings, and demand for institutional change in the French Revolution," Journal of Economic Growth, Springer, vol. 29(1), pages 41-77, March.
    5. Mounir Amdaoud & César Ducruet & Marc‐Antoine Faure, 2022. "The mutual specialization of port and urban functions: The case of France," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 439-460, April.
    6. Sharat Ganapati & Woan Foong Wong & Oren Ziv, 2024. "Entrepôt: Hubs, Scale, and Trade Costs," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(4), pages 239-278, October.
    7. Deda Đelović, 2024. "Considerations on Prevention of Pollution from Ships in a Seaport," Sustainability, MDPI, vol. 16(12), pages 1-25, June.
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    9. Kalouptsidi, Myrto & Brancaccio, Giulia & Papageorgiou, Theodore & Rosaia, Nicola, 2020. "Search Frictions and Efficiency in Decentralized Transport Markets," CEPR Discussion Papers 14827, C.E.P.R. Discussion Papers.
    10. Dávid Krisztián Nagy, 2021. "Quantitative Economic Geography Meets History: Questions, Answers and Challenges," Working Papers 1249, Barcelona School of Economics.
    11. Stephan Maurer & Ferdinand Rauch, 2023. "Economic geography aspects of the Panama Canal," Oxford Economic Papers, Oxford University Press, vol. 75(1), pages 142-162.
    12. Gray, Rowena & Wright, Greg C., 2024. "A rising tide? The local incidence of the second wave of globalization," Journal of International Economics, Elsevier, vol. 148(C).
    13. Hirte, Georg & Lessmann, Christian & Seidel, André, 2020. "International trade, geographic heterogeneity and interregional inequality," European Economic Review, Elsevier, vol. 127(C).
    14. Stephen J. Redding, 2020. "Trade and geography," CEP Discussion Papers dp1718, Centre for Economic Performance, LSE.
    15. Nagy, Dávid Krisztián, 2022. "Quantitative economic geography meets history: Questions, answers and challenges," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    16. Wookun Kim, 2023. "Migration, Commuting, and the Spatial Distribution of Public Spending," Departmental Working Papers 2305, Southern Methodist University, Department of Economics.
    17. David Krisztián Nagy, 2020. "Trade and urbanization: Evidence from Hungary," Economics Working Papers 1858, Department of Economics and Business, Universitat Pompeu Fabra.
    18. Cheng, Cheng & Wang, Xiaobing, 2021. "Transportation cost reducing technological change and wages inequalities," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 600-611.
    19. Ulltveit-Moe, Karen Helene & Heiland, Inga & Moxnes, Andreas & Zi, Yuan, 2019. "Trade From Space: Shipping Networks and The Global Implications of Local Shocks," CEPR Discussion Papers 14193, C.E.P.R. Discussion Papers.
    20. David Krisztián Nagy, 2020. "Quantitative economic geography meets history: Questions, answers and challenges," Economics Working Papers 1774, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2021.

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    More about this item

    Keywords

    ports; containerization; quantitative economic geography; endogenous trade costs;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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