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Interregional Trade, Industrial Location and Import Infrastructure

Author

Listed:
  • Kikuchi, Toru
  • Iwasa, Kazumichi

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’s import infrastructure can affect firms’ 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

  • Kikuchi, Toru & Iwasa, Kazumichi, 2009. "Interregional Trade, Industrial Location and Import Infrastructure," MPRA Paper 16016, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:16016
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    References listed on IDEAS

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    Keywords

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    JEL classification:

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

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