Whether by sea, land or air, the entirety of trade is carried out by the transportation sector. We know surprisingly little, however, about the role of transportation in shaping trade networks. How do transport markets interact with the markets for world trade in goods? How does the behavior of profit-maximizing transport agents influence transport costs, and thus global imports and exports?
A new paper uses vessel AIS data—which regularly reports each ship’s exact position and how deeply it is submerged in the water—and data on shipping contracts to document several facts about transport markets and world trade. The paper illustrates that ships travelRead More »