- Pre-book only
The 163rd meeting jointly organized with International Public Policy Seminar
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Date | 2024.10.18 Fri 13:30 - 15:00 |
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How to apply | Send an email to Ms. Kitabayashi via the address listed below. |
Contact | Ms. Kitabayashi, Institute of Social Science, The University of Tokyo |
The Osaka Workshop on Economics of Institutions and Organizations, OEIO, meets every month to exchange research ideas on institutional and organizational economics. Participants include both people specialized in theoretical research and those in empirical research. Topics of meetings might be about microeconomic theory, macroeconomic theory, or economic history..., whatever on institutional and organizational economics.
Presenter: Hirokazu Ishise (Osaka School of International Public Policy, Osaka University)
Title: "Gauge Size of the Border: the Effect of Railroad Connection on International Trade"
Abstract: I study the contribution of rail connections to international trade using a gravity regression. To deal with the potential endogeneity problem of the cross-border rail connections, I use an instrument; whether a pair of neighboring countries use the same rail gauges. The rail gauge is historically determined. One factor is the construction costs determined by the geographic conditions. Another factor is the former political boundaries when railroads were constructed. Even after controlling for these observable characteristics, whether a pair of countries use the same gauge strongly predicts the cross-border rail connection. Having some rail connections would increase trade value by about 2.7 times larger. The coefficient without dealing with the endogeneity problem is approximately the same or slightly smaller than the coefficient estimated with the instrument depending on the specifications.