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The effects of transport costs within the new economic geography

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  • Olga Alonso-Villar

Abstract

In the last few years a great number of works, involved in what has been called the New Economic Geography, have been focused on explaining the causes of agglomeration in a framework of monopolistic competition à la Dixit-Stiglitz. The purpose of this paper is to analyze, in the light of these theories, the spatial consequences of reductions in transport costs between locations (cities, regions and countries), showing the key assumptions which explain the differences between the results obtained in some of these works. The results show that the spatial pattern of production after these reductions strongly depend on the population’s mobility/immobility, on the dispersion force considered in the model and also on trade cost modeling.

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Bibliographic Info

Paper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 0502.

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Length: 40 pages
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:vig:wpaper:0502

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  1. Monfort, Philippe & Nicolini, Rosella, 1998. "Regional Convergence and International Integration," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1998022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
  3. Olga Alonso-Villar & Jose-MarIa Chamorro-Rivas & Xulia Gonzalez-Cerdeira, 2004. "Agglomeration economies in manufacturing industries: the case of Spain," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2103-2116.
  4. Paluzie i Hernandez, Elisenda, 1999. "Trade policy and regional inequalities," ERSA conference papers ersa99pa231, European Regional Science Association.
  5. Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1996. "Growth and Agglomeration," CEPR Discussion Papers 1529, C.E.P.R. Discussion Papers.
    • Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Growth and Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-68, November.
  6. Krugman, Paul R & Venables, Anthony J, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 857-80, November.
  7. PICARD, Pierre & ZENG, Dao-Zhi, 2003. "Agricultural sector and industrial agglomeration," CORE Discussion Papers 2003022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  9. Olga Alonso-Villar, 2001. "Metropolitan areas and public infrastructure," Investigaciones Economicas, Fundación SEPI, vol. 25(1), pages 139-169, January.
  10. Tabuchi, Takatoshi & Thisse, Jacques-François, 2001. "Taste Heterogeneity, Labour Mobility and Economic Geography," CEPR Discussion Papers 3114, C.E.P.R. Discussion Papers.
  11. Schmutzler, Armin, 1999. " The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, vol. 13(4), pages 355-79, September.
  12. Forslid, Rikard & Haaland, Jan I. & Ulltveit-Moe, Karen-Helene, 1999. "A U-Shaped Europe? A Simulation Study of Industrial Location," CEPR Discussion Papers 2247, C.E.P.R. Discussion Papers.
  13. Edward L. Glaeser & Janet E. Kohlhase, 2003. "Cities, Regions and the Decline of Transport Costs," Harvard Institute of Economic Research Working Papers 2014, Harvard - Institute of Economic Research.
  14. Olga Alonso-Villar & Jos�-Mar�a Chamorro-Rivas, 2001. "How do producer services affect the location of manufacturing firms? The role of information accessibility," Environment and Planning A, Pion Ltd, London, vol. 33(9), pages 1621-1642, September.
  15. Monfort, Philippe & van Ypersele, Tanguy, 2003. "Integration, Regional Agglomeration and International Trade," CEPR Discussion Papers 3752, C.E.P.R. Discussion Papers.
  16. Olga Alonso-Villar, 2000. "Large metropolises in the Third World: an explanation," Working Papers 0004, Universidade de Vigo, Departamento de Economía Aplicada.
  17. Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
  18. Bjorvatn, Kjetil, 1999. "Third World regional integration," European Economic Review, Elsevier, vol. 43(1), pages 47-64, January.
  19. Olga Alonso Villar, 2004. "The effects of transport costs revisited," Working Papers 0407, Universidade de Vigo, Departamento de Economía Aplicada.
  20. Masahisa Fujita & Paul Krugman, 2003. "The new economic geography: Past, present and the future," Papers in Regional Science, Springer, vol. 83(1), pages 139-164, October.
  21. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
  22. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  23. repec:fth:iniesr:430 is not listed on IDEAS
  24. Olga Alonso-Villar, 2002. "Urban agglomeration: Knowledge spillovers and product diversity," The Annals of Regional Science, Springer, vol. 36(4), pages 551-573.
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