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A Simple Model of the Choice of Transport Mode and Plant Location


  • Hwang, Hong
  • Mai, Chao-cheng


This paper tries to ascertain whether or not the profit- maximizing transport mode will be different from the welfare- maximizing one, and investigates the impact of endogenizing the choice of transport mode on the choice of location and input usage. It is shown that the results derived are critically dependent on the characteristics of the chosen production function as well as the specification of the transport cost structure. The model is particularly relevant in countries such as Taiwan, where transport regulation can play a crucial role in determining the location and output of certain industries.

Suggested Citation

  • Hwang, Hong & Mai, Chao-cheng, 1990. "A Simple Model of the Choice of Transport Mode and Plant Location," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 24(3), pages 197-210.
  • Handle: RePEc:spr:anresc:v:24:y:1990:i:3:p:197-210

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    References listed on IDEAS

    1. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 857-880.
    2. 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.
    3. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-384, Oct.-Dec..
    4. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
    5. Magalhães, André & Hewings, Geoffrey J.D. & Azzoni, Carlos R., 2005. "Spatial Dependence and Regional Convergence in Brazil," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 6, pages 5-20.
    6. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    7. Vickerman, Roger, 1995. "Location, accessibility and regional development: the appraisal of trans-European networks," Transport Policy, Elsevier, vol. 2(4), pages 225-234, October.
    8. Antonia Casellas & Catherine Galley, 1999. "Regional Definitions in the European Union: A Question of Disparities?," Regional Studies, Taylor & Francis Journals, vol. 33(6), pages 551-558.
    9. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    10. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April.
    11. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
    12. Roger Vickerman & Klaus Spiekermann & Michael Wegener, 1999. "Accessibility and Economic Development in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(1), pages 1-15.
    13. Philippe Martin, 2000. "The Role of Public Policy in the Process of Regional Convergence," Sciences Po publications info:hdl:2441/9328, Sciences Po.
    14. repec:hhs:iuiwop:430 is not listed on IDEAS
    15. Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 95(4), pages 427-443, December.
    16. Reiner Martin, 1998. "Regional Incentive Spending for European Regions," Regional Studies, Taylor & Francis Journals, vol. 32(6), pages 527-536, August.
    17. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
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