On February 26, 2020, 13.30-14.30, Dr. Andrea Incerpi (University of Insubria) will give a talk on “Do transport costs matter? Freights and the Italian foreign trade, 1862-1938”.
Understanding determinants and dynamics of trade is a challenging issue that committed economic historians starting from the 1930’s. Standard gravity models, exploited as the main econometric tool applied to international trade, only partially solved the problem arising other puzzling questions. The aim of the paper is to investigate the role of transport costs decomposing its elements (i.e. unit freight cost, bulkiness and distance) according to new data available for Italy during 1862-1938.
Keywords: international trade; transportation costs; gravity models.