Asymmetric inter-regional transportation costs, industrial location and growth
AbstractThis paper incorporates asymmetric inter-regional transportation costs into the two-region endogenous growth model in Martin and Ottaviano (1999) to investigate the growth effects of an increase in the cost of transporting goods from the Sough (North) to the North (South). We show that with local research and development spillovers, an increase in the transportation cost to the North (South) increases (decreases) the world growth rate through an increase (decrease) in the concentration of firms in the North.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 33 (2013)
Issue (Month): 2 ()
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Asymmetric transportation costs; Industrial Location; Growth; R&D;
Find related papers by JEL classification:
- D9 - Microeconomics - - Intertemporal Choice
- R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
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- Baldwin, Richard & Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1998.
"Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs,"
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1803, C.E.P.R. Discussion Papers.
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NBER Working Papers
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- Vasco Leite & Sofia B.S.D. Castro & João Correia-da-Silva, 2008.
"The core periphery model with asymmetric inter-regional and intra-regional trade costs,"
FEP Working Papers
287, Universidade do Porto, Faculdade de Economia do Porto.
- Vasco Leite & Sofia Castro & João Correia-da-Silva, 2009. "The core periphery model with asymmetric inter-regional and intra-regional trade costs," Portuguese Economic Journal, Springer, vol. 8(1), pages 37-44, April.
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