Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
How Far Goods Travel: Global Transport and Supply Chains from 1965–2020
Journal of Economic Perspectives
vol. 37,
no. 3, Summer 2023
(pp. 3–30)
(Complimentary)
Abstract
This paper considers the evolution of global transportation usage over the past half century and its implications for supply chains. Transportation usage 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.Citation
Ganapati, Sharat, and Woan Foong Wong. 2023. "How Far Goods Travel: Global Transport and Supply Chains from 1965–2020." Journal of Economic Perspectives, 37 (3): 3–30. DOI: 10.1257/jep.37.3.3Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- L14 Transactional Relationships; Contracts and Reputation; Networks
- L22 Firm Organization and Market Structure
- L91 Transportation: General
- N60 Economic History: Manufacturing and Construction: General, International, or Comparative
- N70 Economic History: Transport, International and Domestic Trade, Energy, Technology, and Other Services: General, International, or Comparative
- R41 Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
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