The effects of transport costs revisited
AbstractThe aim of this paper is to study the location decisions of upstream and downstream industries when transport costs in each sector are analyzed separately. By using a new economic geography model built on Venables (1996), it will be shown that the effects of cost reductions in transporting final goods are different from those in intermediate goods. Our analysis suggests that regional convergence is more the consequence of improvements in transportation between upstream and downstream firms than those between firms and consumers. This will help us to better understand the forces driving this kind of model while giving an additional explanation to the differences between Krugman’s (1991) results and those of Venables (1996).
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Bibliographic InfoPaper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0407.
Length: 23 pages
Date of creation: Jul 2004
Date of revision:
location of firms; monopolistic competition; input-output linkages; transport costs;
Other versions of this item:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Redding, Stephen & Venables, Anthony J., 2004.
"Economic geography and international inequality,"
Journal of International Economics,
Elsevier, vol. 62(1), pages 53-82, January.
- Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," International Trade 0103003, EconWPA.
- Redding, Stephen J & Venables, Anthony J., 2000. "Economic Geography and International Inequality," CEPR Discussion Papers 2568, C.E.P.R. Discussion Papers.
- Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," CEP Discussion Papers dp0495, Centre for Economic Performance, LSE.
- Yochanan Shachmurove, 2007. "Geography and Industry Meets Venture Capital," PIER Working Paper Archive 07-015, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Luis Armando Galvis, 2009. "Geografía económica del Caribe Continental," DOCUMENTOS DE TRABAJO SOBRE ECONOMÃA REGIONAL 006304, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
- Olga Alonso-Villar, 2006. "A Reflection On The Effects Of Transport Costs Within The New Economic Geography," Working Papers 57, ECINEQ, Society for the Study of Economic Inequality.
- Armando Pires, 2006. "Estimating Krugman’s Economic Geography Model for the Spanish Regions," Spanish Economic Review, Springer, vol. 8(2), pages 83-112, June.
- Emanuel Shachmurove & Yochanan Shachmurove, 2010. "Location, Location, Location: Entrepreneurial Finance Meets Economic Geography," PIER Working Paper Archive 10-030, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
- Yochanan Shachmurove, 2011. "First-Round Entrepreneurial Investments: Where, When and Why?," PIER Working Paper Archive 11-017, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Olga Alonso-Villar, 2005. "The effects of transport costs within the new economic geography," Working Papers 0502, Universidade de Vigo, Departamento de Economía Aplicada.
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