Working Paper: CEPR ID: DP9393
Authors: Gilles Duranton; Peter M. Morrow; Matthew A. Turner
Abstract: 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; Trade; Specialisation; Transport Costs
JEL Codes: F14; R41; R49
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| highway construction (R42) | trade levels (F19) |
| historical routes (N73) | highway availability (R48) |
| highways (R48) | weight of exports (F10) |
| highways (R48) | total value of exports (F10) |
| highways (R48) | travel distances (R41) |
| specialization in heavy goods sectors (L79) | weight of exports (F10) |