International transport costs and the margins of Intra-Latin American maritime trade.

This paper focuses on the analysis of the relationship between maritime trade and transport cost in Latin America. The analysis is based on disaggregated (SITC 5 digit level) trade data for intra Latin maritime trade routes over the period 1999-2004. The research contributes to the literature by disentangling the effects of transport costs on the range of traded goods (extensive margin) and the traded volumes of goods (intensive margin) of international trade in order to test some of the predictions of the trade theories that introduce firm heterogeneity in productivity, as well as fixed costs of exporting. Recent investigations show that spatial frictions (distance) reduce trade mainly by trimming the number of shipments and that most firms ship only to geographically proximate customers, instead of shipping to many destinations in quantities that decrease in distance. Our analyses confirm these findings and show that the opposite pattern is observed for ad-valorem freight rates that reduce aggregate trade values mainly by reducing the volume of imported goods (intensive margin).

Sustainable urban transport in Central America - a future without the car?

Is it conceivable to contemplate a future without the car as the center of an urban transportation system? Can emerging economies grow without concomitant growth in car usage? San Pedro Sula, Honduras, is one city at a critical decision point about the future of transportation and mobility. Will it be a sustainable transport future that balances economic, environmental and social needs or will it be the traditional “predict and provide” approach that attempts to expand the capacity of the road system to meet future travel demand. This paper provides some background into the issue for this Central American city by describing the current urban transport system, current plans for improvement and outlines a process for defining a vision for a sustainable transport future in San Pedro Sula. The paper concludes with a challenge to all cities that currently have low automobile ownership rates to consider a sustainable transport system in order to “thrive” with transport choices for all residents rather than “choke” on congestion and the negative side effects thereof.