Working Paper: NBER ID: w28148
Authors: Csar 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: Port Development; Containerization; Local Economic Effects; Market Access
JEL Codes: F60; R40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Containerization (L91) | City population (R23) |
| Increased market access (F69) | City population (R23) |
| Local costs offset benefits of market access (F16) | City population (R23) |
| Increased shipping flows (L91) | City population (R23) |
| Aggregate resource cost of land use (R14) | Overall welfare gains from containerization (D60) |