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The Economics of Isolation and Distance

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  • Stephen Redding
  • Anthony J. Venables

Abstract

This paper explores the economic implications of isolation and remoteness. Evidence on the impact of distance on trade costs and trade flows is reviewed, and the effects of remoteness on real incomes are investigated. Empirical work confirms the predictions of theory, that distance from markets and sources of supply can have a significant negative impact on per capita income. The possible implications of new technologies for these spatial inequalities are discussed.

Suggested Citation

  • Stephen Redding & Anthony J. Venables, 2002. "The Economics of Isolation and Distance," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 28, pages 93-108.
  • Handle: RePEc:noj:journl:v:28:y:2002:p:93-108
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    References listed on IDEAS

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    Cited by:

    1. Pedrosa, Jose & Do, Quy-Toan, 2008. "How does geographic distance affect credit market access in Niger ?," Policy Research Working Paper Series 4772, The World Bank.
    2. 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.
    3. Shamnaaz B. Sufrauj, 2012. "The implications of the elimination of the multi-fibre arrangement for small remote island economies: A network analysis," Department of Economics Working Papers 1201, Department of Economics, University of Trento, Italia.
    4. Rudolph, Stephan, 2009. "The gravity equation with micro-founded trade costs," Dresden Discussion Paper Series in Economics 11/09, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    5. Bakar Normizan & Ishii Yasunori, 2014. "Export Competition between Landlocked and Coastal Countries: An Analysis of Strategic Export Policies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 804-812, November.
    6. Jyoti Rahman, 2005. "Comparing Australian and United States productivity," Economic Roundup, The Treasury, Australian Government, issue 2, pages 27-45, June.

    More about this item

    Keywords

    Economic isolation; market access; trade costs.;

    JEL classification:

    • F1 - International Economics - - Trade
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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