ASYMMETRY EFFECTS OF TRANSPORT COSTS ON INTERNATIONAL TRADE


  • S.V. Melnykov

Abstract

The second half of the XX century is characterized by the rapid growth of international trade. The average annual growth rate was 5.9%, while the share of the volume of trade in total production has increased more than three times. One of the key growth factors experts say reduction in transport costs of international transport of goods. The decrease in transport costs is asymmetric: the impact of the costs of maritime transport on the value of the goods has changed slightly, but for air travel expenses decreased by an order that led to the rapid growth of air travel and the increase in the rate of international trade transactions. Thus, the study of the influence of the asymmetry of transport costs on international trade is undoubtedly the theoretical and practical interest. As we know, in 2008 Paul Krugman was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to New Trade Theory, which was the result of a rethinking of the classical theory of Ricardo- Heckscher-Ohlin. P. Krugman's theory explains the paradox of international trade in the second half of the XX century: why countries with similar production conditions are trading with each other, and why countries import goods which they also produce, for example, cars. The theory of the relative merits of Ricardo and Heckscher-Ohlin model is easy to explain why trade the countries with a comparative advantage in the production of goods or the presence of factors of production, but could not explain international trade is almost identical goods. Analysis of scientific works, which examines the impact of transport costs on the spatial distribution of economic activities within the framework of the new international trade theory devoted a lot of work. However, analysis of scientific papers devoted to the study of influence precisely of the asymmetry of transport cost on the agglomeration processes has not yet received its development. The article analyzes the scientific publications devoted to the study impact of the asymmetry of transport costs on the spatial distribution of economic activity in international trade. The analysis revealed that the impact of the asymmetry of transport costs on the agglomeration process is non-trivial and requires further investigation under a new theory of international trade.

Author Biography

S.V. Melnykov

k.e.n., assistant professor, post-graduate

Institute Of Market Problems And Economic&Ecological Research of the National Academy Of Sciences Of Ukraine, Frantsuzskiy Boulevard, 29, Odesa, Ukraine

Published
2016-09-09
How to Cite
Melnykov, S. (2016). ASYMMETRY EFFECTS OF TRANSPORT COSTS ON INTERNATIONAL TRADE. Economic Innovations, 18(2(62), 36-41. Retrieved from http://ei-journal.com/index.php/journal/article/view/251