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Asymmetric inter-regional transportation costs, industrial location and growth

Author

Listed:
  • Wataru Johdo

    () (Tezukayama University)

Abstract

This paper incorporates asymmetric inter-regional transportation costs into the two-region endogenous growth model in Martin and Ottaviano (1999) to investigate the growth effects of an increase in the cost of transporting goods from the Sough (North) to the North (South). We show that with local research and development spillovers, an increase in the transportation cost to the North (South) increases (decreases) the world growth rate through an increase (decrease) in the concentration of firms in the North.

Suggested Citation

  • Wataru Johdo, 2013. "Asymmetric inter-regional transportation costs, industrial location and growth," Economics Bulletin, AccessEcon, vol. 33(2), pages 1082-1090.
  • Handle: RePEc:ebl:ecbull:eb-13-00159
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I2-P102.pdf
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    References listed on IDEAS

    as
    1. Vasco Leite & Sofia Castro & João Correia-da-Silva, 2009. "The core periphery model with asymmetric inter-regional and intra-regional trade costs," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 8(1), pages 37-44, April.
    2. Baldwin, Richard E & Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," Journal of Economic Growth, Springer, vol. 6(1), pages 5-37, March.
    3. Baldwin, Richard E., 1999. "Agglomeration and endogenous capital," European Economic Review, Elsevier, vol. 43(2), pages 253-280, February.
    4. Martin, Philippe & I.P. Ottaviano, Gianmarco, 1999. "Growing locations: Industry location in a model of endogenous growth," European Economic Review, Elsevier, vol. 43(2), pages 281-302, February.
    5. repec:ebl:ecbull:v:6:y:2008:i:24:p:1-5 is not listed on IDEAS
    6. Toru Kikuchi, 2008. "Distribution Costs, International Trade and Industrial Location," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-5.
    7. Martin, Philippe, 1999. "Public policies, regional inequalities and growth," Journal of Public Economics, Elsevier, vol. 73(1), pages 85-105, July.
    8. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Asymmetric transportation costs; Industrial Location; Growth; R&D;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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