ABSTRACT
We shall concentrate on the latter in this chapter. Transport costs have been falling gradually over the centuries. The result has been the increased scope for trade between distant nations, and the possibility of intensification of trade between close neighbours. Changing transport costs have been a potent force shaping the development of economies around the world. This is no more evident than in Australia. As a remote and large country, transport costs within the economy, and between Australia and its markets have always been high. How transport costs moulded the development of Australia is explored by Blainey in his ‘the tyranny of distance’ (1966).
