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Footloose Capital and Locational Advantage of a Hub

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Author Info
Kikuchi, Toru

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Abstract

The purpose of this study is to illustrate, with a simple three-region (located on a line), two-good (homogeneous good/differentiated high-tech products), two-factor (labor/``footloose'' capital) model, how falling transport costs can affect firms' location decisions and trade structure. It is shown that the locational advantage of a central hub is magnified via firms' location decisions.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10415.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:10415

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F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

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  1. Takanori Ago & Ikumo Isono & Takatoshi Tabuchi, 2006. "Locational disadvantage of the hub," The Annals of Regional Science, Springer, vol. 40(4), pages 819-848, December. [Downloadable!] (restricted)
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This page was last updated on 2009-12-7.

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