I estimate the effect of major roads within and between cities
on the level and composition of trade for Colombian cities. I confirm
that road distance between cities is a major impediment to trade. In
addition, major roads within cities have a large effect on a city’s exports
and imports with an elasticity of approximately 0.20 estimated with ols
and up to 0.50 with iv. If anything, the effects are stronger for the value
than for the weight of exports. I interpret these results as city roads
shifting economic activity in cities towards the production of tradable
and somewhat lighter goods.