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Regional policy and industrial location decisions

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Author Info

  • Luis Fernando Lanaspa

    ()
    (Universidad de Zaragoza)

  • Fernando Sanz

    ()
    (Universidad de Zaragoza)

Abstract

In this paper we analyse whether different infrastructures affect the location decisions of economic agents. Taking the model in Martin and Rogers (1995), a complete range of infrastructure classes that a region can have is considered. We consider domestic, international transport, international export and international import infrastructures. The principal conclusion is that the optimal regional policy that attracts industrial location is the one that improves domestic and international export infrastructures. Superior domestic and export infrastructures also increase welfare. (Copyright: Fundación SEPI)

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Bibliographic Info

Article provided by Fundación SEPI in its journal Investigaciones Economicas.

Volume (Year): 28 (2004)
Issue (Month): 1 (January)
Pages: 67-87

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Handle: RePEc:iec:inveco:v:28:y:2004:i:1:p:67-87

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Related research

Keywords: Public infrastructure; industrial location;

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References

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  1. Venables, Anthony J., 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
  2. Puga, Diego & Venables, Anthony J., 1998. "Agglomeration and Economic Development: Import Substitution Vs. Trade Liberalization," CEPR Discussion Papers 1782, C.E.P.R. Discussion Papers.
  3. Robert J. Barro, 1991. "Government Spending in a Simple Model of Endogenous Growth," NBER Working Papers 2588, National Bureau of Economic Research, Inc.
  4. Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
  5. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
  6. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
  7. Olga Alonso-Villar, 2001. "Metropolitan areas and public infrastructure," Investigaciones Economicas, Fundación SEPI, vol. 25(1), pages 139-169, January.
  8. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
  9. Garcia-Mila, Teresa & McGuire, Therese J., 1992. "The contribution of publicly provided inputs to states' economies," Regional Science and Urban Economics, Elsevier, vol. 22(2), pages 229-241, June.
  10. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  11. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  12. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. González-Val, Rafael & Lanaspa, Luis & Pueyo, Fernando, 2008. "Trade policies, concentration, growth and welfare," MPRA Paper 9730, University Library of Munich, Germany.
  2. Ugo Fratesi, 2008. "Regional policy from a supra-regional perspective," The Annals of Regional Science, Springer, vol. 42(3), pages 681-703, September.
  3. Ugo Fratesi, 2004. "Regional policy from a supra-regional perspective," ERSA conference papers ersa04p509, European Regional Science Association.

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