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Increasing Returns in Transportation and the Formation of Hubs


  • Tomoya Mori

    () (Institute of Economic Research, Kyoto University)


The spatial structure of transport network is subject to increasing returns in transportation, distance and density economies. Transport costs between locations are thus in general endogenous, and are determined by the interaction between the spatial distribution of transport demand and these increasing returns, although such interdependence has long been ignored in regional models. By using a simple model, the present paper explains the formation of transport hubs endogenously, and shows how the balance of these two types of increasing returns influences the spatial distribution of transport hubs.

Suggested Citation

  • Tomoya Mori, 2011. "Increasing Returns in Transportation and the Formation of Hubs," KIER Working Papers 770, Kyoto University, Institute of Economic Research.
  • Handle: RePEc:kyo:wpaper:770

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    Cited by:

    1. Xu, Hangtian, 2016. "Domestic railroad infrastructure and exports: Evidence from the Silk Route," China Economic Review, Elsevier, vol. 41(C), pages 129-147.
    2. Li, Zhigang & Xu, Hangtian, 2016. "High-Speed Railroad and Economic Geography: Evidence from Japan," ADB Economics Working Paper Series 485, Asian Development Bank.
    3. Hangtian Xu, 2014. "Revisit' the Silk Road: A Quasi-Experiment Approach Estimating the Effects of Railway Speed-Up Project on China-Central Asia Exports," ERSA conference papers ersa14p78, European Regional Science Association.
    4. Xu, Hangtian & Itoh, Hidekazu, 2016. "Density economies and transport geography: Evidence from the container shipping industry," MPRA Paper 75580, University Library of Munich, Germany.

    More about this item


    Formation of a transport hub; Distance economies of transportation; Density economies of transportation;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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