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Asymmetric inter-regional transportation costs, industrial location and growth

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  • Wataru Johdo

    ()
    (Tezukayama University)

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    Abstract

    This 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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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I2-P102.pdf
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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 33 (2013)
    Issue (Month): 2 ()
    Pages: 1082-1090

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    Handle: RePEc:ebl:ecbull:eb-13-00159

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    Related research

    Keywords: Asymmetric transportation costs; Industrial Location; Growth; R&D;

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    1. Baldwin, Richard & Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1998. "Global Income Divergence, Trade and Industrialization: The Geography of Growth Take-Offs," CEPR Discussion Papers 1803, C.E.P.R. Discussion Papers.
    2. Kikuchi, Toru, 2008. "Distribution Costs, International Trade and Industrial Location," MPRA Paper 9160, University Library of Munich, Germany.
    3. Martin, Philippe, 1999. "Public policies, regional inequalities and growth," Journal of Public Economics, Elsevier, vol. 73(1), pages 85-105, July.
    4. Richard E. Baldwin, 1998. "Agglomeration and Endogenous Capital," NBER Working Papers 6459, National Bureau of Economic Research, Inc.
    5. Martin, Philippe & I.P. Ottaviano, Gianmarco, 1999. "Growing locations: Industry location in a model of endogenous growth," European Economic Review, Elsevier, vol. 43(2), pages 281-302, February.
    6. 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.
    7. repec:ebl:ecbull:v:6:y:2008:i:24:p:1-5 is not listed on IDEAS
    8. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
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