The impact of interregional and intraregional transportation costs on industrial location and efficient transport policies
Almost all models of the (New) Economic Geography have focused on interregional transportation costs to understand industrial location, considering regions as dots without intraregional transportation costs. We introduce a distinction between interregional and intraregional transportation costs. This allows assessing more precisely the effects of different types of transport policies. Focusing on two regions (a core and a periphery), we show that improving the quality of the interregional infrastructure, or of the intraregional infrastructure in the core region, leads to an increased concentration of activity in the core region. However, if we reduce intraregional transportation costs in the periphery, some firms transfer from the core to the periphery. From an efficiency point of view, we observe that, in absence of regulation, the concentration of firms is too high in the center. We show what set of policies improves the equilibrium.
|Date of creation:||05 Apr 2011|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00583163|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:hal-00583163. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.