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Interregional Trade, Industrial Location and Import Infrastructure

Author

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  • Toru Kikuchi

    (Graduate School of Economics, Kobe University)

  • Kazumichi Iwasa

    (Kyoto University)

Abstract

The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one region fs import infrastructure can affect firms f location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import infrastructure, one region might divert high-tech industries to another region. This effect reduces the incentive to improve import infrastructure.

Suggested Citation

  • Toru Kikuchi & Kazumichi Iwasa, 2009. "Interregional Trade, Industrial Location and Import Infrastructure," Discussion Papers 0908, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:0908
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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