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Interregional Trade, Industrial Location and Import Infrastructure

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  • Toru Kikuchi

    ()
    (Graduate School of Economics, Kobe University)

  • Kazumichi Iwasa

    ()
    (Kyoto University)

Abstract

The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one regionfs import infrastructure can affect firmsf location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import infrastructure, one region might divert high-tech industries to another region. This effect reduces the incentive to improve import infrastructure.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2009/0908.pdf
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Bibliographic Info

Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 0908.

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Length: 10pages
Date of creation: Jul 2009
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Handle: RePEc:koe:wpaper:0908

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Web page: http://www.econ.kobe-u.ac.jp
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  1. 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).
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  4. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2007. "Countries, regions and trade: On the welfare impacts of economic integration," European Economic Review, Elsevier, Elsevier, vol. 51(5), pages 1277-1301, July.
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  6. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers, C.E.P.R. Discussion Papers 909, C.E.P.R. Discussion Papers.
  7. Joan Costa-Font & Eduardo Rodriguez-Oreggia, 2005. "Trade and the Effect of Public Investment on Regional Inequalities in Heterogeneously Integrated Areas," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 28(6), pages 873-891, 06.
  8. Toru Kikuchi, 2005. "Interconnected communications networks and home market effects," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 38(3), pages 870-882, August.
  9. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series, The World Bank 2257, The World Bank.
  10. Mori, Tomoya & Nishikimi, Koji, 2002. "Economies of transport density and industrial agglomeration," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 32(2), pages 167-200, March.
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