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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.

Suggested Citation

  • Kikuchi, Toru, 2008. "Distribution Costs, International Trade and Industrial Location," MPRA Paper 9160, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:9160
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    References listed on IDEAS

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    1. 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.
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    Cited by:

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    2. 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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    JEL classification:

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

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