TY - GEN AB - This paper examines the structure of the shipping network and its implications on global trade and welfare. Using novel data on the movements of container ships, we calculate optimal travel routes. We then estimate the impact of a shock to the network on global trade by means of a natural experiment: the 2016 Panama Canal expansion. Trade between country pairs using the canal increased by 9-10% after the expansion. While the building costs were borne by Panama alone, a model-based quantification shows that the welfare gains were shared by many countries, due to the network structure of shipping. AU - Zi, Yuan AU - Heiland, Inga AU - Moxnes, Andreas AU - Ulltveit-Moe, Karen Helene CY - London DA - 2019 DA - 2019 ID - 298993 L1 - https://repository.graduateinstitute.ch/record/298993/files/CEPR-DP14193.pdf L2 - https://repository.graduateinstitute.ch/record/298993/files/CEPR-DP14193.pdf L4 - https://repository.graduateinstitute.ch/record/298993/files/CEPR-DP14193.pdf LK - https://repository.graduateinstitute.ch/record/298993/files/CEPR-DP14193.pdf N2 - This paper examines the structure of the shipping network and its implications on global trade and welfare. Using novel data on the movements of container ships, we calculate optimal travel routes. We then estimate the impact of a shock to the network on global trade by means of a natural experiment: the 2016 Panama Canal expansion. Trade between country pairs using the canal increased by 9-10% after the expansion. While the building costs were borne by Panama alone, a model-based quantification shows that the welfare gains were shared by many countries, due to the network structure of shipping. PB - Centre for Economic Policy Research PP - London PY - 2019 PY - 2019 T1 - Trade from spaceshipping networks and the global implications of local shocks TI - Trade from spaceshipping networks and the global implications of local shocks UR - https://repository.graduateinstitute.ch/record/298993/files/CEPR-DP14193.pdf Y1 - 2019 ER -