IDEAS home Printed from
   My bibliography  Save this paper

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

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    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. Huang, Hai-Jun & Xia, Tian & Tian, Qiong & Liu, Tian-Liang & Wang, Chenlan & Li, Daqing, 2020. "Transportation issues in developing China's urban agglomerations," Transport Policy, Elsevier, vol. 85(C), pages 1-22.
    3. Zhigang Li & Hangtian Xu, 2018. "High‐speed railroads and economic geography: Evidence from Japan," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 705-727, September.
    4. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    5. Lankhuizen, Maureen & Boonstra, Harm Jan & de Blois, Chris, 2020. "Unpacking freight – Identifying conditions driving regional freight transport in statistics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 415-435.
    6. Xu, Hangtian & Itoh, Hidekazu, 2016. "Density economies and transport geography: Evidence from the container shipping industry," MPRA Paper 75580, University Library of Munich, Germany.
    7. Ahmed Saber Mahmud, 2021. "How do All Roads Lead to Rome? The Story of Transportation Network Inducing Agglomeration," Networks and Spatial Economics, Springer, vol. 21(2), pages 419-464, June.
    8. Hans R A Koster & Takatoshi Tabuchi & Jacques-François Thisse, 2022. "To be connected or not to be connected? The role of long-haul economies [Do rural roads create pathways out of poverty? Evidence from India]," Journal of Economic Geography, Oxford University Press, vol. 22(4), pages 711-753.
    9. Xu, Hangtian & Itoh, Hidekazu, 2018. "Density economies and transport geography: Evidence from the container shipping industry," Journal of Urban Economics, Elsevier, vol. 105(C), pages 121-132.
    10. Ahmed Saber Mahmud, 2022. "Demand-pull versus cost-push: monocentric equilibrium in a spatial network," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 455-485, October.
    11. 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.

    More about this item


    Formation of a transport hub; Distance economies of transportation; Density economies of transportation;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kyo:wpaper:770. 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: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chiaki Hara (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.