@TechReport{CEPII:2009-26,
author={Daniel Mirza and Habib Zitouna},
title={Oil Prices, Geography and Endogenous Regionalism: Too Much Ado About (Almost) Nothing},
year=2009,
month=October,
institution={CEPII},
type={Working Papers},
url={https://www.cepii.fr/CEPII/fr/publications/wp/abstract.asp?NoDoc=1635},
number={2009-26},
abstract={This paper studies the effect of oil prices on the geography of international trade. We model transport costs as a function of variable and fixed costs. By affecting the first cost component, oil prices can then modify the structure of transportation costs across partners. This, we argue, acts as a factor of distortion in relative prices, thereby creating a reallocation of trade at the expense of remote countries. In that respect, an increase in oil prices should favor regionalism.},
keywords={REGIONALISM ; OIL PRICES ; GEOGRAPHY ; TRANSPORT}
}