Working Paper: CEPR ID: DP15487
Authors: Cesar Ducruet; Rka Juhsz; Dvid Krisztin 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.
Keywords: containerization; quantitative economic geography
JEL Codes: R40; O33; F6
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Deeper ports (L92) | Enhanced market access (F15) |
| Increased shipping flows (L91) | World welfare (I30) |
| Increased shipping flows (L91) | Trade to GDP ratio (F10) |
| Local costs from increased land use (R14) | Reduced welfare gains (D69) |
| Deeper ports (L92) | Increased shipping flows (L91) |
| Increased shipping flows (L91) | Population growth (J11) |