Working Paper: NBER ID: w31167
Authors: Sharat Ganapati; Woan Foong Wong
Abstract: This paper considers the evolution of global transportation usage over the past half century and its implications for supply chains. Transportation usage per unit of real output has more than doubled as costs decreased by a third. Participation of emerging economies in world trade and longer-distance trade between countries contribute to this usage increase, thereby encouraging longer supply chains. We discuss technological advances over this period, and their interactions with endogenous responses from transportation costs and supply chain linkages. Supply chains involving more countries and longer distances are reflective of reliable and efficient transportation, but are also more exposed to disruptions, highlighting the importance of considering the interconnectedness of transportation and supply chains in policymaking and future work.
Keywords: No keywords provided
JEL Codes: F14; F15; L91; R4; R41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| participation of emerging economies in global trade (F14) | evolution of transportation usage (R41) |
| longer distance trade (F12) | evolution of transportation usage (R41) |
| decline in transportation costs (R41) | evolution of transportation usage (R41) |
| technological advancements (O33) | evolution of transportation usage (R41) |
| participation of emerging economies in global trade (F14) | increase in relative global transport use by weight (R41) |
| trade over longer distances (F10) | increase in transport usage (R41) |