Understanding How Markets and Places Can Lower TransportCosts in Developing Countries Matías Herrera Dappe, Mathilde Lebrand,and Aiga Stokenberga ShrinkingEconomic Distance ShrinkingEconomic Distance UNDERSTANDING HOW MARKETS ANDPLACES CAN LOWER TRANSPORT COSTSIN DEVELOPING COUNTRIES Matías Herrera Dappe, Mathilde Lebrand,and Aiga Stokenberga © 2024 International Bank for Reconstruction and Development / The World Bank1818 H Street, NW, Washington, DC 20433Telephone: 202-473-1000; Internet:www.worldbank.org Some rights reserved 1 2 3 4 27 26 25 24 This work is a product of the staff of The World Bank with external contributions. The findings, interpreta-tions, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Boardof Executive Directors, or the governments they represent. The World Bank does not guarantee the accu-racy, completeness, or currency of the data included in this work and does not assume responsibility for anyerrors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to usethe information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes and other information shown in this work do not imply any judgment on the part of The World Bankconcerning the legal status of any territory or the endorsement or acceptance of such boundaries. The citationof works authored by others does not mean The World Bank endorses the views expressed by those authors orthe content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privilegesand immunities of The World Bank, all of which are specifically reserved. Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)http://creativecommons.org/licenses/by/3.0/igo. Under the Creative Commons Attribution license, you are free to copy,distribute, transmit, and adapt this work, including for commercial purposes, under the following conditions: Attribution—Please cite the work as follows: Herrera Dappe, Matías, Mathilde Lebrand, and Aiga Stokenberga.2024.Shrinking Economic Distance: Understanding How Markets and Places Can Lower Transport Costs in DevelopingCountries.Sustainable Infrastructure Series. Washington, DC: World Bank. doi:10.1596/978-1-4648-2124-0.License: Creative Commons Attribution CC BY 3.0 IGO Translations—If you create a translation of this work, please add the following disclaimer along with theattribution:This translation was not created by The World Bank and should not be considered an official World Banktranslation. The World Bank shall not be liable for any content or error in this translation. Adaptations—If you create an adaptation of this work, please add the following disclaimer along with theattribution:This is an adaptation of an original work by The World Bank. Views and opinions expressed in the adaptationare the sole responsibility of the author or authors of the adaptation and are not endorsed by The World Bank. Third-party content—The World Bank does not necessarily own each component of the content containedwithin the work. The World Bank therefore does not warrant that the use of any third-party-owned individualcomponent or part contained in the work will not infringe on the rights of those third parties. The risk of claimsresulting from such infringement rests solely with you. If you wish to re-use a component of the work, it is yourresponsibility to determine whether permission is needed for that re-use and to obtain permission from thecopyright owner. Examples of components can include, but are not limited to, tables, figures, or images. All queries on rights and licenses should be addressed to World Bank Publications, The World Bank, 1818 HStreet NW, Washington, DC 20433, USA; e-mail:pubrights@worldbank.org. ISBN (paper): 978-1-4648-2124-0ISBN (electronic): 978-1-4648-2125-7DOI: 10.1596/978-1-4648-2124-0 Cover image: Colorful City Transport Template, truck, broken road, black isolated silhouette, street of poorneighborhood in the city, and slum. © Adobe Stock. All modified by Veronica Elena Gadea. Further permissionrequired for reuse.Cover design:Veronica Elena Gadea / World Bank Global Corporate Solutions. Library of Congress Control Number: 2024910802 ABOUT THE SERIES Sustainable infrastructure is a key enabler of economic and social development, aswell as environmental sustainability. Quality infrastructure enhances productivityand competitiveness, contributing to economic growth and employment, as well as tofacilitating international trade. Broad coverage of infrastructure services promotes socialinclusion and equity and supports the formation of human capital. Green infrastructuresafeguards local environmental quality while contributing to the global decarbonizationprocess. The challenge of delivering sustainable infrastructure services is