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Import tariffs and transport prices

Author

Listed:
  • Dominik Boddin
  • Frank Stähler
Abstract
This paper discusses how import tariffs interact with transport prices in episodes of trade liberalization. We develop a model of a transport industry that operates under imperfect competition and economies of scale. Double marginalization due to market power reduces the effects of trade liberalization, while a larger trade volume may support them due to economies of scale. We use a large data set of maritime transport data and combine them with tariff data to find that economies of scale beat market power: a decline in the tariff implies a decline in freight rates. Droits de douane et prix du transport. Cet article discute de l'interaction entre les droits de douane et le prix du transport au cours d'épisodes de libéralisation du commerce. Nous mettons au point un modèle d'industrie du transport où il y a concurrence imparfaite et économies d'échelle. La double marginalisation due au pouvoir du marché réduit les effets de la libéralisation du commerce, alors qu'un plus grand volume des échanges commerciaux peut les soutenir en raison des économies d'échelle. Nous utilisons un important ensemble de données sur le transport maritime que nous associons à des données sur les droits pour constater que les économies d'échelle surpassent le pouvoir du marché : un déclin des droits se traduit par un déclin des taux de fret.

Suggested Citation

  • Dominik Boddin & Frank Stähler, 2024. "Import tariffs and transport prices," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(2), pages 430-458, May.
    • Handle: RePEc:wly:canjec:v:57:y:2024:i:2:p:430-458
    DOI: 10.1111/caje.12708
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    References listed on IDEAS

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