KDI 한국개발연구원 - 경제정책정보 - 국외연구자료 - 국제무역 - Trade From Space: Shipping Networks and The Global Implications of Local Shocks

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Trade From Space: Shipping Networks and The Global Implications of Local Shocks

CEPR 2020.01.13
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This paper examines the structure of the shipping network and its implications on global trade and welfare. Using novel data on the movements of container ships, we calculate optimal travel routes. We then estimate the impact of a shock to the network on global trade by means of a natural experiment: the 2016 Panama Canal expansion. Trade between country pairs using the canal increased by 9-10% after the expansion. While the building costs were borne by Panama alone, a model-based quantification shows that the welfare gains were shared by many countries, due to the network structure of shipping.

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