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Interregional Trade, Industrial Location and Import Infrastructure

Author

Listed:
  • 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
    as

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2009/0908.pdf
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    References listed on IDEAS

    as
    1. 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, January.
    2. Martin, Philippe & I.P. Ottaviano, Gianmarco, 1999. "Growing locations: Industry location in a model of endogenous growth," European Economic Review, Elsevier, vol. 43(2), pages 281-302, February.
    3. 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.
    4. 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, June.
    5. 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.
    6. 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.
    7. Limao, Nuno & Venables, Anthony J., 1999. "Infrastructure, geographical disadvantage, and transport costs," Policy Research Working Paper Series 2257, The World Bank.
    8. Toru Kikuchi, 2005. "Interconnected communications networks and home market effects," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 870-882, August.
    9. 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.
    10. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
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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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