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A Spatial Equilibrium Model for Plant Location and Interregional Trade

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  • Matthias von Oppen
  • John T. Scott

Abstract

Combination of a single-equation location model and interregional trade analysis into one model provides an effective tool to simultaneously determine regionally optimal numbers and sizes of processing plants and optimal interregional trading and pricing. The results of an earlier empirical application of the model on the prospective soybean industry in India are reviewed after four years of actual development. Private industry is allocating its processing plants in line with the pattern computed by the model, and a comparatively costly plan of arbitrarily establishing one government plant at an arbitrary location has not been implemented.

Suggested Citation

  • Matthias von Oppen & John T. Scott, 1976. "A Spatial Equilibrium Model for Plant Location and Interregional Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(3), pages 437-445.
    • Handle: RePEc:oup:ajagec:v:58:y:1976:i:3:p:437-445.
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    File URL: http://hdl.handle.net/10.2307/1239260
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    Cited by:

    1. Jordan, Jeffrey L. & Thompson, Stanley R., 1982. "Using a Regional Input-Output Model to Forecast Rail Freight Traffic: With Applications for the Subsidy-Abandonment Decision," Agricultural Economic Report Series 201304, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Khachatryan, N. & Zeller, Heiko & Haring, Anna Maria & Khachatryan, Armen, 2008. "Modelling Interregional Trade of Energy Crops in Eastern Germany," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44121, European Association of Agricultural Economists.
    3. M T Lucas & D Chhajed, 2004. "Applications of location analysis in agriculture: a survey," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(6), pages 561-578, June.
    4. Zeller, Heiko & Haring, Anna Maria & Khachatryan, Armen, 2009. "Effects of Increased Biofuel Blending on Demand for Biomass, Food Production and Commodity Prices in Eastern Germany," 2009 Conference, August 16-22, 2009, Beijing, China 51477, International Association of Agricultural Economists.

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