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Distribution Costs, International Trade and Industrial Location

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  • Kikuchi, Toru

Abstract

The purpose of this study is to illustrate, with a simple two-country, two-good, two-factor model, how a technological/regulational improvement in one country's distribution sector can affect firms' location decisions and the nature of the trading equilibrium. It is shown that, through improvements in distribution sector, one country might divert high-tech industries to another country. This effect reduces the incentive to improve distribution sector lower.

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File URL: http://mpra.ub.uni-muenchen.de/9160/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9160.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:9160

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  1. Bandyopadhyay, Usree, 1998. "Distribution Costs and International Trade: A Ricardian Model," Review of International Economics, Wiley Blackwell, vol. 6(1), pages 164-78, February.
  2. Makoto Yano & Fumio Dei, 2003. "Trade, Vertical Production Chain, and Competition Policy," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 237-252, 05.
  3. Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1996. "Growing Locations: Industry Location in a Model of Endogenous Growth," CEPR Discussion Papers 1523, C.E.P.R. Discussion Papers.
  4. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
  5. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  6. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  7. Donald J. Rousslang & Theodore To, 1993. "Domestic Trade and Transportation Costs as Barriers to International Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 26(1), pages 208-21, February.
  8. Toru Kikuchi, 2005. "Interconnected communications networks and home market effects," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 870-882, August.
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Cited by:
  1. Wataru Johdo, 2013. "Asymmetric inter-regional transportation costs, industrial location and growth," Economics Bulletin, AccessEcon, vol. 33(2), pages 1082-1090.

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