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New economic geography: A guide to transport analysis

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Author Info

  • Miren Lafourcade

    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, Université de Valenciennes et du Hainaut Cambrésis [Valenciennes] - Université de Valenciennes et du Hainaut-Cambresis, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris)

  • Jacques-François Thisse

    (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris, CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain (UCL) - Belgique)

Abstract

The paper surveys the main contributions of new economic geography from the point of view of transport analysis. It shows that decreasing transport costs is likely to exacerbate regional disparities. However, very low transport costs should foster a more balanced distribution for economic activities across space. Thus, the spatial curve of development, which relates the degree of spatial concentration to the level of transport costs, would be bell-shaped. The paper also provides a detailed discussion of the main determinants of transport costs, which remain fairly large in most countries. It concludes with a discussion of some policy implications.

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Bibliographic Info

Paper provided by HAL in its series PSE Working Papers with number halshs-00586878.

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Date of creation: Jan 2008
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Handle: RePEc:hal:psewpa:halshs-00586878

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00586878
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Related research

Keywords: economic geography ; transport costs ; regional disparities;

This paper has been announced in the following NEP Reports:

References

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  1. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  2. Robert-Nicoud, Frédéric, 2006. "Off-Shoring of Business Services and Deindustrialization: Threat or Opportunity - and for Whom?," CEPR Discussion Papers 5617, C.E.P.R. Discussion Papers.
  3. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-50, September.
  4. Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR & CES & MSH, vol. 17(35), pages 321-359, October.
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Citations

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Cited by:
  1. Julio Martínez-Galarraga & Daniel A. Tirado-Fabregat & Rafael González-Val, 2014. "Market Potential and Regional Economic Growth in Spain, 1860-1930," Documentos de Trabajo (DT-AEHE) 1409, Asociación Española de Historia Económica.
  2. Hayakawa, Kazunobu, 2011. "How serious is the omission of bilateral tariff rates in gravity?," IDE Discussion Papers 311, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. repec:hal:cesptp:halshs-00467888 is not listed on IDEAS
  4. Julio Martínez-Galarraga, 2014. "Market potential estimates in history: a survey of methods and an application to Spain, 1867-1930," Working Papers 0051, European Historical Economics Society (EHES).
  5. repec:hal:journl:halshs-00363389 is not listed on IDEAS
  6. Hayakawa, Kazunobu, 2011. "Bilateral tariff rates in international trade : finished goods versus intermediate goods," IDE Discussion Papers 304, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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