The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger Read Free Page B

Great West
(New York, 1991), and Mary Yeager Kujovich, “The Refrigerator Car and the Growth of the American Dressed Beef Industry,”
Business History Review
44 (1970): 460–482. For an example from Britain, see Wray Vamplew, “Railways and the Transformation of the Scottish Economy,”
Economic History Review
24 (1971): 54. On transportation and urban development, see James Heilbrun,
Urban Economics and Public Policy
(New York, 1974), p. 32, and Edwin S. Mills and Luan Sendé, “Inner Cities,”
Journal of Economic Literature
35 (1997): 731. On aviation, see Caroline Isard and Walter Isard, “Economic Implications of Aircraft,”
Quarterly Journal of Economics
59 (1945): 145–169.
    12. The seminal article along this line was Robert Solow, “Technical Change and the Aggregate Production Function,”
Review of Economics and Statistics
39, no. 2 (1957): 65–94. On the problems of innovation, see Joel Mokyr, “Technological Inertia in Economic History,”
Journal of Economic History
52 (1992): 325–338; Nathan Rosenberg, “On Technological Expectations,”
Economic Journal
86, no. 343 (1976): 528; and Erik Brynjolfsson and Lorin M. Hitt, “Beyond Computation: Information Technology, Organizational Transformation, and Business Performance,”
Journal of Economic Perspectives
14, no. 4 (2000): 24. Electricity was first used in manufacturing in 1883; for discussion of its relatively slow acceptance in manufacturing, see Warren D. Devine, Jr., “From Shafts to Wires: Historical Perspective on Electrification,”
Journal of Economic History
43 (1983): 347–372. Examples of the debate over computers include Paul A. David, “The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox,”
American Economic Review
80 (1990): 355–361; Stephen D. Oliner and Daniel E. Sichel, “The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?”
Journal of Economic Perspectives
14, no. 4 (2000): 3–22; and Dale W. Jorgenson and Kevin J. Stiroh, “Information Technology and Growth,”
American Economic Review
89, no. 2 (1999): 109–115.
    13. Paul M. Romer, “Why, Indeed, in America? Theory, History, and the Origins of Modern Economic Growth,” Working Paper 5443, NBER, January 1996.
    14. David Ricardo,
The Principles of Political Economy and Taxation
(London, 1821; reprint, New York, 1965), pp. 77–97. Richard E. Caves and Ronald W. Jones point out that the widely taught Heckscher-Ohlin model, which shows that a country has a comparative advantage in producing goods that make more intensive uses of its more abundant factor of production, assumes that transport costs will not affect trade; see their
World Trade and Payments: An Introduction
, 2nd ed. (New York, 1977). More typically, Miltiades Chacholiades,
Principles of International Economics
(New York, 1981), p. 333, describes international market equilibrium under the unstated assumption that trade is costless.
    15. The seminal article in this field was Paul Krugman, “Increasing Returns and Economic Geography,”
Journal of Political Economy
99, no. 3 (1991): 483–499. The impact of changing transportation costs is further developed in Krugman and Anthony J. Venables, “Globalization and the Inequality of Nations,”
Quarterly Journal of Economics
110, no. 4 (1995): 857–880, and in Masahisa Fujita, Paul Krugman, and Anthony J. Venables,
The Spatial Economy: Cities, Regions, and International Trade
(Cambridge, MA, 1999).
    16. David Hummels, “Have International Transportation Costs Declined?” Working Paper, University of Chicago Graduate School of Business, 1999, and the International Monetary Fund,
World Economic Outlook
, September 2002, p. 116, contend that the cost of sea freight has not fallen significantly in recent decades. James E. Anderson and Eric van Wincoop, “Trade Costs,”
Journal of Economic Literature
42 (September 2004): 691 751, and Céline Carrere and Maurice Schiff, “On the Geography of