It is important to be able to predict changes in the location of populations and industries in regions that are in the process of economic integration. The IDE Geographical Simulation Model (IDE-GSM) has been developed with two major objectives: (1) to determine the dynamics of locations of populations and industries in East Asia in the long-term, and (2) to analyze the impact of specific infrastructure projects on the regional economy at sub-national levels. The basic structure of the IDE-GSM is introduced in this article and accompanied with results of test analyses on the effects of the East West Economic Corridor on regions in Continental South East Asia. Results indicate that border costs appear to play a big role in the location choice of populations and industries, often a more important role than physical infrastructures themselves.
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Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number
159.
Length: Date of creation: Jun 2008 Date of revision: Publication status: Published in IDE Discussion Paper. No. 159. 2008.6 Handle: RePEc:jet:dpaper:dpaper159
Find related papers by JEL classification: D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other F29 - International Economics - - International Factor Movements and International Business - - - Other O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East R49 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Other
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