Data and Code for: The Round Trip Effect: Endogenous Transport Costs and International Trade

Principal Investigator(s):  View help for Principal Investigator(s) Woan Foong Wong, University of Oregon

Version:  View help for Version V1

Name File Type Size Last Modified
  DataCodeRepository 09/01/2021 05:39:PM
ReadMe.pdf application/pdf 111.6 KB 06/23/2022 01:26:PM

Project Citation: 

Wong, Woan Foong. Data and Code for: The Round Trip Effect: Endogenous Transport Costs and International Trade. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-09-21. https://doi.org/10.3886/E120607V1

Project Description

Summary:  View help for Summary Containerships travel between a fixed set of origins and destinations in round trips, inducing a negative correlation in their freight rates. I study the implications of this round trip effect on international trade and trade policy. I identify this effect and develop an instrument using this effect to estimate the impact of transport costs on trade. I simulate counterfactual import tariff increases in a quantitative model and quantify the importance of endogenizing transport costs with respect to this effect: an exogenous transport costs model predicts a trade balance improvement from protectionist policies while the round trip model finds the opposite.

Scope of Project

Subject Terms:  View help for Subject Terms trade costs; transport costs; transportation; trade policy; container shipping
JEL Classification:  View help for JEL Classification
      F13 Trade Policy; International Trade Organizations
      F14 Empirical Studies of Trade
      R40 Transportation Economics: General
      R41 Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 1/2011 – 6/2016


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Published Versions

V1 [2022-09-21]

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