IDEAS home Printed from https://ideas.repec.org/p/vig/wpaper/0407.html
   My bibliography  Save this paper

The effects of transport costs revisited

Author

Listed:
  • Olga Alonso Villar

Abstract

The aim of this paper is to study the location decisions of upstream and downstream industries when transport costs in each sector are analyzed separately. By using a new economic geography model built on Venables (1996), it will be shown that the effects of cost reductions in transporting final goods are different from those in intermediate goods. Our analysis suggests that regional convergence is more the consequence of improvements in transportation between upstream and downstream firms than those between firms and consumers. This will help us to better understand the forces driving this kind of model while giving an additional explanation to the differences between Krugman’s (1991) results and those of Venables (1996).

Suggested Citation

  • Olga Alonso Villar, 2004. "The effects of transport costs revisited," Working Papers 0407, Universidade de Vigo, Departamento de Economía Aplicada.
  • Handle: RePEc:vig:wpaper:0407
    as

    Download full text from publisher

    File URL: http://webX06.webs.uvigo.es/sites/default/files/wp0407.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Yochanan Shachmurove, 2007. "Geography and Industry Meets Venture Capital," PIER Working Paper Archive 07-015, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    2. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
    3. Martí, Joana M. Comas & Tancrez, Jean-Sébastien & Seifert, Ralf W., 2015. "Carbon footprint and responsiveness trade-offs in supply chain network design," International Journal of Production Economics, Elsevier, vol. 166(C), pages 129-142.
    4. Olga Alonso-Villar, 2006. "A Reflection On The Effects Of Transport Costs Within The New Economic Geography," Working Papers 57, ECINEQ, Society for the Study of Economic Inequality.
    5. Luis Armando Galvis, 2009. "Geografía económica del Caribe Continental," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL Y URBANA 006304, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
    6. Yochanan Shachmurove, 2011. "First-Round Entrepreneurial Investments: Where, When and Why?," PIER Working Paper Archive 11-017, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    7. Yochanan Shachmurove, 2006. "An Excursion into the Venture Capital Industry Stratified by Locations and Industries 1996-2005," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 11(3), pages 79-104, Fall.
    8. Armando Pires, 2006. "Estimating Krugman’s Economic Geography Model for the Spanish Regions," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(2), pages 83-112, June.
    9. Olga Alonso-Villar, 2005. "The effects of transport costs within the new economic geography," Working Papers 0502, Universidade de Vigo, Departamento de Economía Aplicada.
    10. Emanuel Shachmurove & Yochanan Shachmurove, 2010. "Location, Location, Location: Entrepreneurial Finance Meets Economic Geography," PIER Working Paper Archive 10-030, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.

    More about this item

    Keywords

    location of firms; monopolistic competition; input-output linkages; transport costs;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    Statistics

    Access and download statistics

    Corrections

    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:vig:wpaper:0407. 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: (Departamento de Economía Aplicada). General contact details of provider: http://edirc.repec.org/data/deviges.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

    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.