Title
Trade Cluster Impacts on USA Southern Border Transportation Costs
Publication Date
1-1-2020
Publication Name
International Trade Journal
Source Full Text URL
https://doi.org/10.1080/08853908.2020.1748146
Document Type
Article
DOI
10.1080/08853908.2020.1748146
Abstract
© 2020, © 2020 Taylor & Francis Group, LLC. Panel regression analysis is used to examine the impact of trade clusters on transportation costs along the southern border of the United States. CIF/FOB ratios are utilized as the transportation cost measures. Grubel-Lloyd and Herfindahl-Hirschman indexes are utilized to identify trade clusters in the sample. Data are assembled for four customs districts (El Paso, Laredo, Nogales, and San Diego) during a 20-year period between 1995 and 2015. Empirical results suggest that trade clusters are associated with reduced transportation costs. These results differ from those of the northern border of the United States, where trade clusters have higher transportation costs.