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Interregional Trade, Industrial Location and Import Infrastructure

  • Toru Kikuchi

    ()

    (Graduate School of Economics, Kobe University)

  • Kazumichi Iwasa

    ()

    (Kyoto University)

The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one regionfs import infrastructure can affect firmsf 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.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2009/0908.pdf
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Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 0908.

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Length: 10pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:koe:wpaper:0908
Contact details of provider: Web page: http://www.econ.kobe-u.ac.jp
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  1. Mori, Tomoya & Nishikimi, Koji, 2002. "Economies of transport density and industrial agglomeration," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 167-200, March.
  2. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
  3. Ottaviano, Gianmarco & Thisse, Jacques-Francois, 2004. "Agglomeration and economic geography," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 58, pages 2563-2608 Elsevier.
  4. Martin, Philippe & Ottaviano, Gianmarco, 1996. "Growing Locations: Industry Location in a Model of Endogenous Growth," CEPR Discussion Papers 1523, C.E.P.R. Discussion Papers.
  5. Toru Kikuchi, 2005. "Interconnected communications networks and home market effects," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 870-882, August.
  6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
  7. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, June.
  8. Joan Costa-Font & Eduardo Rodriguez-Oreggia, 2005. "Trade and the Effect of Public Investment on Regional Inequalities in Heterogeneously Integrated Areas," The World Economy, Wiley Blackwell, vol. 28(6), pages 873-891, 06.
  9. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2007. "Countries, regions and trade: On the welfare impacts of economic integration," European Economic Review, Elsevier, vol. 51(5), pages 1277-1301, July.
  10. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
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