Geography of the World Economy
AbstractThis paper presents a theoretical framework to study the effects of geographical factors on the distribution of industries in the world econmy, which consists of many regions. The geographical feature of each region is summarized by a proximity matrix, whose elements measure the closeness between every pair of regions, and depend on the parameters representing the transport and other costs of using a variety of trade routes. The main objective is to show how a change in these costs of trade affects the distribution of industries, by amplifying the geographical advantages and disadvantages held by different regions. The results are used not only to examine the effects of an improvement in transport infrastructure, but also to discuss some problems from economic history (mostly Japanese and European), regional economic integration, the nort-south division, and others.
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Bibliographic InfoPaper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1239.
Date of creation: Jan 1999
Date of revision:
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Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014
Web page: http://www.kellogg.northwestern.edu/research/math/
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Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F15 - International Economics - - Trade - - - Economic Integration
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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- Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
- Kiminori Matsuyama, 1996.
"Why Are There Rich and Poor Countries? Symmetry-Breaking in the World Economy,"
NBER Working Papers
5697, National Bureau of Economic Research, Inc.
- Matsuyama, Kiminori, 1996. "Why Are There Rich and Poor Countries? Symmetry-Breaking in the World Economy," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 419-439, December.
- Kiminori Matsuyama, 2002.
"Explaining Diversity: Symmetry-Breaking in Complementarity Games,"
American Economic Review,
American Economic Association, vol. 92(2), pages 241-246, May.
- Kiminori Matsuyama, 2002. "Explaining Diversity: Symmetry-Breaking in Complementarity Games," Discussion Papers 1336, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Michal Fabinger, 2013. "Trade and Interdependence in a Spatially Complex World," 2013 Meeting Papers 874, Society for Economic Dynamics.
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