DP9393 Roads and Trade: Evidence from the US

Author(s): Gilles Duranton, Peter Morrow, Matthew A Turner
Publication Date: March 2013
Keyword(s): interstate highways, trade and specialisation, transport costs
JEL(s): F14, R41, R49
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=9393

We estimate the effect of interstate highways on the level and composition of trade for us cities. Highways within cities have a large effect on the weight of city exports with an elasticity of approximately 0.5. We find little effect of highways on the total value of exports. Consistent with this, we find that cities with more highways specialize in sectors producing heavy goods.