IDEAS home Printed from https://ideas.repec.org/a/tpr/adbadr/v34y2017i2p1-24.html
   My bibliography  Save this article

Asia's Geographic Development

Author

Listed:
  • Klaus Desmet

    (Southern Methodist University)

  • Dávid Krisztián Nagy

    (CREI, Universitat Pompeu Fabra, and Barcelona Graduate School of Economics)

  • Esteban Rossi-Hansberg

    (Princeton University)

Abstract

This paper studies the impact of spatial frictions on Asia's long-term spatial development. Using the framework provided in Desmet, Nagy, and Rossi-Hansberg (2016), we analyze the evolution of Asia's economy and the relative performance of specific regions and countries. We then perform a number of counterfactual experiments and find that a worldwide drop in transport costs of 40% increases the present discounted value of real income by 70.7% globally and 78% in Asia. These figures are much larger than those found in standard quantitative trade models because they include dynamic effects and take into account intracountry transport costs. We also perform exercises in which we upgrade Asia's road network or relax migratory restrictions between locations in Asia. These exercises emphasize the important role of spatial frictions in the development of Asia's economy.

Suggested Citation

  • Klaus Desmet & Dávid Krisztián Nagy & Esteban Rossi-Hansberg, 2017. "Asia's Geographic Development," Asian Development Review, MIT Press, vol. 34(2), pages 1-24, September.
    • Handle: RePEc:tpr:adbadr:v:34:y:2017:i:2:p:1-24
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/ADEV_a_00093
    File Function: link to full text PDF
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marta Aloi & Joanna Poyago-Theotoky & Frederic Tournemaine, 2018. "Growth and the Geography of Knowledge," CESifo Working Paper Series 6951, CESifo.
    2. Akamatsu, Takashi & Mori, Tomoya & Osawa, Minoru & Takayama, Yuki, 2017. "Spatial scale of agglomeration and dispersion: Theoretical foundations and empirical implications," MPRA Paper 80689, University Library of Munich, Germany.

    More about this item

    Keywords

    economic geography; economy of Asia; growth and development; international migration; quantitative trade models;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:adbadr:v:34:y:2017:i:2:p:1-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.