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On high-speed connections and the location of activities

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  • PEETERS, Dominique
  • THISSE, Jacques-François
  • THOMAS, Isabelle

Abstract

We study the impact of a high-speed connection between two regional economies on the location of production activities, using the simple plant-location problem and toy networks. As expected, the relative value of fixed production costs to transportation costs is crucial in the determination of facility locations. Less expected is the fairly strong instability observed in the structure of the locational pattern of facilities when the relative value of the fixed costs changes. The construction of a piece of infrastructure has an impact on the regional structure of production provided that it allows for a substantial reduction in transport spending. When scale economies in production are large, one regional center swallows up the other and may eventually become the only production center within the integrated economy.
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Suggested Citation

  • PEETERS, Dominique & THISSE, Jacques-François & THOMAS, Isabelle, 2000. "On high-speed connections and the location of activities," LIDAM Reprints CORE 1488, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1488
    DOI: 10.1068/a3345
    Note: In : Environment and Planning, 32, 2097-2112, 2000
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    References listed on IDEAS

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    1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
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    Cited by:

    1. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
    2. Champagne, Marie-Pier & Dubé, Jean, 2023. "The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review," Transport Policy, Elsevier, vol. 131(C), pages 139-155.
    3. Dominique Peeters & Isabelle Thomas, 2005. "Does the Shape of a Territory Influence the Locations of Human Activities? a Numerical Geography Approach," ERSA conference papers ersa05p56, European Regional Science Association.
    4. Bigotte, João F. & Krass, Dmitry & Antunes, António P. & Berman, Oded, 2010. "Integrated modeling of urban hierarchy and transportation network planning," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(7), pages 506-522, August.

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