Transportation Rates and Economic Development in Northern Ontario

Transportation Rates and Economic Development in Northern Ontario

N. C. Bonsor
Series: Heritage
Copyright Date: 1977
Pages: 92
https://www.jstor.org/stable/10.3138/j.ctt15jvx01
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  • Book Info
    Transportation Rates and Economic Development in Northern Ontario
    Book Description:

    This book examines the influence of transport costs on regional economic development in northern Ontario.

    eISBN: 978-1-4426-3223-3
    Subjects: Transportation Studies, Sociology, Business

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. Acknowledgments
    (pp. vii-2)
  4. 1 Introduction
    (pp. 3-11)

    Economists have long been concerned with determining the underlying causes for the existence of disparities in the level of economic development, as measured by some standard such as the level of employment or income, across the economic regions of a nation.¹ In this context, the role of spatial factors, such as distance and transportation costs, have received some attention. Most of the work relating transportation costs to the level of regional economic growth and development has been highly abstract. Very little attention has been given to the problem of determining the actual level of transportation costs or the effect of...

  5. 2 Freight rates in Canada: an overview
    (pp. 12-25)

    For the purpose of this study, three modes of freight transportation are oi importance: rail, highway, and lake shipping. Air cargo operations are not included in this study because they account for only a very small proportion of total freight transportation. Transportation by pipeline is excluded because of the specialized nature of this mode; at present the transportation by pipeline of commodities other than oil and gas is negligible.

    Before proceeding with the construction and estimation of a model, it is necessary to look briefly at the overall structure of freight rates in Canada.

    The structure of rail rates in...

  6. 3 The theoretical model
    (pp. 26-39)

    The purpose of this study is to estimate the effect of transportation costs on regional economic development. It is necessary to develop an econometric model to determine empirically the structure of Canadian freight rates. Clearly it is not sufficient merely to estimate the absolute level of transportation costs for the major inputs and outputs of the regional economies. The high level of aggregation implied by this approach will mask many of the important functional relationships in the rate structure. We need to determine how rates vary across different commodities and regions with respect to variables such as distance, weight, value,...

  7. 4 An analysis of transportation freight rates
    (pp. 40-53)

    In this chapter we seek to determine the relative impact of transportation costs on the inputs and outputs of the regional economy and whether such costs are higher or lower than those obtaining for other regions.

    Given the limited time and budget involved, it was not possible to include all rail, highway, and water rates in the data base. The Canadian Freight Association Tariff 500, which shows commodity rates for All Rail, Rail and Lake, Rail, Lake and Rail, and Water and Rail in force from stations in Eastern Canada to Western Canada is, for example, over five hundred pages...

  8. 5 Subsidies and regulation
    (pp. 54-65)

    This chapter assesses the potential impact of granting transportation cost subsidies to producers located outside major market areas. It will be shown that the effect of such subsidies is in part determined by the nature and extent of modal and intramodal competition in the transport sector. Thus, the effect of regulation on competition among carriers will be examined.

    Canada, along with most other western nations, has attempted to stimulate the rate of economic development and growth in regions where the level of income or of employment has been significantly below the national average. All such attempts can be viewed as...

  9. 6 Transportation costs and Northern Ontario economic development
    (pp. 66-70)

    In this chapter we seek to analyse the importance of transportation costs on the economic development of Northern Ontario. There are two main considerations: first, whether the existing structure of freight rates in Canada discriminates against producers located in Northern Ontario compared with producers located in other parts of Canada; second, whether the absolute level of transportation costs for producers located in Northern Ontario can be seen as a significant barrier to regional development.

    With respect to the first consideration, the regression analysis conducted in chapter 4 clearly shows that rates for shipments originating in Northern Ontario destined for other...

  10. APPENDIX A Description of data and sources
    (pp. 71-82)
  11. APPENDIX B The impact of statutory grain rates on the rate structure
    (pp. 83-86)
  12. References
    (pp. 87-91)
  13. Back Matter
    (pp. 92-92)