Advanced Search
MyIDEAS: Login to save this paper or follow this series

A Reflection On The Effects Of Transport Costs Within The New Economic Geography

Contents:

Author Info

  • Olga Alonso-Villar

    ()
    (Universidade de Vigo)

Abstract

The purpose of this paper is to analyze, in the light of recent contributions of New Economic Geography models, the spatial consequences of transport cost reductions. So far, the role of transport costs have been only partially unveiled, since papers focused either on the Dixit-Stiglitz-Iceberg framework or on the alternative framework put forth by Ottaviano et al. (2002)—which departs from the former in preferences and transport modelling. This paper goes a step further, offering a comprehensive view that includes the two approaches, in contexts both of two and of more than two locations. As opposed to other revisions of the literature, which have focused mainly on the centripetal forces included in these models, we emphasize the role of dispersion forces. The study suggests that in a two-location setting the results seem quite robust against changes in transportation modelling, so that considering either multiplicative transport costs or additive the predictions are identical. However, when allowing for a multilocation setup, the analysis becomes more complex.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-57.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 57.

as in new window
Length: 27 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2006-57

Contact details of provider:
Email:
Web page: http://www.ecineq.org
More information through EDIRC

Related research

Keywords: agglomeration; dispersion; monopolistic competition; transport costs.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Tabuchi, Takatoshi & Thisse, Jacques-Francois, 2002. "Taste heterogeneity, labor mobility and economic geography," Journal of Development Economics, Elsevier, Elsevier, vol. 69(1), pages 155-177, October.
  2. OTTAVIANO, Gianmarco & THISSE, Jacques-François, . "Agglomeration and economic geography," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1725, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series, Research Institute of Industrial Economics 430, Research Institute of Industrial Economics.
  4. Monfort, Philippe & Nicolini, Rosella, 2000. "Regional Convergence and International Integration," Journal of Urban Economics, Elsevier, vol. 48(2), pages 286-306, September.
  5. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, Elsevier, vol. 62(1), pages 53-82, January.
  6. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, Elsevier, vol. 43(2), pages 303-334, February.
  7. Donald R. Davis, 1997. "The Home Market, Trade and Industrial Structure," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1800, Harvard - Institute of Economic Research.
  8. Masahisa Fujita & Paul Krugman, 2003. "The new economic geography: Past, present and the future," Papers in Regional Science, Springer, Springer, vol. 83(1), pages 139-164, October.
  9. Edward L. Glaeser & Janet E. Kohlhase, 2003. "Cities, Regions and the Decline of Transport Costs," NBER Working Papers 9886, National Bureau of Economic Research, Inc.
  10. MURATA, Yasudada & THISSE, Jacques-François, 2005. "A simple model of economic geography à la Helpman-Tabuchi," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2005017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Forslid, R. & Haaland, J.I. & Knarvik, K.H.M., 1999. "A U-Shaped Europe? A Simulation Study of Industrial Location," Papers, Norwegian School of Economics and Business Administration- 19/99, Norwegian School of Economics and Business Administration-.
  12. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
  13. OTTAVIANO, Gianmarco & THISSE, Jacques-François, 1999. "Agglomeration and trade revisited," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1999041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  14. Masahisa Fujita & Tomoya Mori, 2005. "Frontiers of the New Economic Geography," KIER Working Papers, Kyoto University, Institute of Economic Research 604, Kyoto University, Institute of Economic Research.
  15. Amiti, Mary, 2005. "Location of vertically linked industries: agglomeration versus comparative advantage," European Economic Review, Elsevier, Elsevier, vol. 49(4), pages 809-832, May.
  16. Bjorvatn, Kjetil, 1999. "Third World regional integration," European Economic Review, Elsevier, Elsevier, vol. 43(1), pages 47-64, January.
  17. PICARD, Pierre M. & ZENG, Dao-Zhi, . "Agricultural sector and industrial agglomeration," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1893, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  18. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 2(4), pages 373-406, October.
  19. Masahisa Fujita & Tomoya Mori, 2005. "Transport development and the evolution of economic geography," Portuguese Economic Journal, Springer, Springer, vol. 4(2), pages 129-156, 08.
  20. Olga Alonso-Villar, 2000. "Large metropolises in the Third World: an explanation," Working Papers, Universidade de Vigo, Departamento de Economía Aplicada 0004, Universidade de Vigo, Departamento de Economía Aplicada.
  21. Olga Alonso Villar, 2004. "The effects of transport costs revisited," Working Papers, Universidade de Vigo, Departamento de Economía Aplicada 0407, Universidade de Vigo, Departamento de Economía Aplicada.
  22. Takanori Ago & Ikumo Isono & Takatoshi Tabuchi, 2006. "Locational disadvantage of the hub," The Annals of Regional Science, Springer, Springer, vol. 40(4), pages 819-848, December.
  23. Olga Alonso-Villar & Jos�-Mar�a Chamorro-Rivas, 2001. "How do producer services affect the location of manufacturing firms? The role of information accessibility," Environment and Planning A, Pion Ltd, London, vol. 33(9), pages 1621-1642, September.
  24. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
  25. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, American Economic Association, vol. 67(3), pages 297-308, June.
  26. Philip McCann, 2005. "Transport costs and new economic geography," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 5(3), pages 305-318, June.
  27. Paluzie i Hernandez, Elisenda, 1999. "Trade policy and regional inequalities," ERSA conference papers ersa99pa231, European Regional Science Association.
  28. Kashif S. Mansori, 2003. "The Geographic Effects of Trade Liberalization with Increasing Returns in Transportation," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 43(2), pages 249-268.
  29. Rikard Forslid & Gianmarco I.P. Ottaviano, 2003. "An analytically solvable core-periphery model," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 3(3), pages 229-240, July.
  30. Kristian Behrens, 2011. "International Integration And Regional Inequalities: How Important Is National Infrastructure?," Manchester School, University of Manchester, vol. 79(5), pages 952-971, 09.
  31. Tabuchi, Takatoshi, 1998. "Urban Agglomeration and Dispersion: A Synthesis of Alonso and Krugman," Journal of Urban Economics, Elsevier, vol. 44(3), pages 333-351, November.
  32. Frédéric Robert-Nicoud, 2005. "The structure of simple 'New Economic Geography' models (or, On identical twins)," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 5(2), pages 201-234, April.
  33. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  34. repec:fth:iniesr:430 is not listed on IDEAS
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Stanislav, Kološta & Ivan, Sokáč & Filip, Flaška & Mário, Hošala, 2008. "Analýza siete ŽP Group podľa vybraných oblastí skúmania Novej ekonomickej geografie a teórie učiacich sa regiónov," MPRA Paper 13977, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2006-57. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.