Transport Costs and Rural Development
Innovations that reduce costs of transport from rural locations may also reduce transport costs to rural areas. As transport costs fall, producers can afford to concentrate and achieve economies of scale. This paper explains an initially negative, but ultimately positive, relationship between reductions in transport costs and rural development. A two-region general equilibrium model with firm and worker spatial mobility highlights the firm and household location implications of costly transport service use by both industry and agriculture in the context of scale economies and product differentiation. The computable general equilibrium model is initialized and verified with a bi-regional Social Accounting Matrix and then used for simulations. Changes in relative transport costs are shown to affect relative regional wage rates, thus also determining the location of 'production-cost-oriented' firms.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||01 Jan 1998|
|Date of revision:|
|Publication status:||Published in Journal of Regional Science 1998, vol. 38 no. 2, pp. 293-312|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gordon F. Mulligan, 1984. "Agglomeration and Central Place Theory: A Review of the Literature," International Regional Science Review, SAGE Publishing, vol. 9(1), pages 1-42, September.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Kilkenny, Maureen, 1993. "Rural vs. Urban Effects of Terminating Farm Subsidies," Staff General Research Papers Archive 11121, Iowa State University, Department of Economics.
- Peter Nijkamp & Roberta Capello, 1996. "Telecommunications technologies and regional development: theoretical considerations and empirical evidence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 30(1), pages 7-30.
- Henderson I. Vernon, 1994. "Where Does an Industry Locate?," Journal of Urban Economics, Elsevier, vol. 35(1), pages 83-104, January.
- repec:cor:louvrp:-713 is not listed on IDEAS
- Uwe Walz, 1996. "Long-run effects of regional policy in an economic union," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 30(2), pages 165-183.
- Ilan Salomon, 1996. "Telecommunications, cities and technological opportunism," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 30(1), pages 75-90.
When requesting a correction, please mention this item's handle: RePEc:isu:genres:1185. 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: (Curtis Balmer)
If references are entirely missing, you can add them using this form.