Technology, Trade and Changes in Transport in the Atlantic Space

Scientific paper nº. 5

This paper asks what is required to develop resurgence in trade and economic integration in the Atlantic economy. It does this by examining the factors that have led to growth in the past and examines the current network of transport links; in particular maritime networks. The paper outlines demand and supply based drivers. It finds on the demand side that the growth of national GDP’s has led not only to an increase in goods transported but also to a change in the composition of those goods. Growing GDP has also influenced the mode of transport used to
carry goods. Other demand side factors that have influenced the growth of trade include lower trade barriers as a result of trade agreements; the entry into the world economy of former centrally planned command economies as well as the emerging BRICS and NICs and the operations of multinational companies. On the supply side the main influence in promoting networks include the decline in transportation costs brought about by technological changes affecting ships and aircraft coupled with the increase in investment in sea ports and airports as well as
the associated development of hub and spoke networks. The development and use of the internet connections has also boosted trade in goods. To regenerate the Atlantic economy will require inter governmental cooperation to develop economic and political institutions to facilitate economic integration and growth and improve transport networks in the Atlantic economic space.