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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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    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. 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.
    4. 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.
    5. Ömer Özak, 2012. "Distance to the Technological Frontier and Economic Development," Departmental Working Papers 1201, Southern Methodist University, Department of Economics.
    6. Peter Hall & Robert Wylie, 2014. "Isolation and technological innovation," Journal of Evolutionary Economics, Springer, vol. 24(2), pages 357-376, April.
    7. Ömer Özak, 2018. "Distance to the pre-industrial technological frontier and economic development," Journal of Economic Growth, Springer, vol. 23(2), pages 175-221, June.
    8. 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.
    9. Steven Bond-Smith, 2024. "Diversifying Hawai‘i's Specialized Economy: A Spatial Economic Perspective," Economic Development Quarterly, , vol. 38(1), pages 40-59, February.
    10. Jyoti Rahman, 2005. "Comparing Australian and United States productivity," Economic Roundup, The Treasury, Australian Government, issue 2, pages 27-45, June.
    11. Yonatan Dinku & Dereje Regasa, 2021. "Ethnic Diversity and Local Economies," South African Journal of Economics, Economic Society of South Africa, vol. 89(3), pages 348-367, September.

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    More about this item

    Keywords

    Economic isolation; market access; trade costs.;
    All these keywords.

    JEL classification:

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

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