Investment in Infrastructure and Trade: The Case of Ports

This paper examines how investments in port infrastructure affect international trade patterns and economic activity. The authors develop a framework linking port capacity, congestion, shipping costs, and trade flows, showing how infrastructure investment shapes both the volume and composition of global trade. Using detailed data on ports and maritime transportation, the study quantifies the economic gains from improved port infrastructure and highlights the role of transportation bottlenecks in limiting trade integration and economic development.