From mine to coast: transport infrastructure and the direction of trade in developing countries

Roberto Bonfatti and Steven Poelhekke 
in: Journal of Development Economics (forthcoming)
 

Mine-related transport infrastructure typically connects mines directly to the coast, at least in countries where those mineral resources are mostly exported. But if mines are an important determinant of total national investment in infrastructure, a resource-rich country may end up with a transportation network with an interior-to-coast shape, potentially biasing its trade costs in favour of overseas countries relative to neighboring countries. Read more >