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Regional Specialization via Differences in Transport Costs

  • Hajime Takatsuka

    ()

  • Dao-Zhi Zeng

    ()

This paper examines a new economic geography model with multiple (three) industries and urban costs. The industries are asymmetric in their transport costs. The following results were obtained. First, if transport costs sufficiently decrease whereas commuting costs are constant, we have three stable location patterns; full dispersion, partial regional specialization, and complete regional specialization. Second, if commuting costs sufficiently decrease (resp. increase) whereas transport costs are constant, we have full agglomeration (resp. full dispersion). The cases with medium value of transport and commuting costs and with multiple (three) regions are analyzed by use of numerical simulation.

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File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa05/papers/448.pdf
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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p448.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p448
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  1. OTTAVIANO, Gianmarco & TABUCHI , Takatoshi & THISSE, Jacques-François, . "Agglomeration and trade revisited," CORE Discussion Papers RP -1553, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  3. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
  4. Diego Puga, 1996. "The Spread of Industry: Spatial Agglomeration in Economic Development," CEP Discussion Papers dp0279, Centre for Economic Performance, LSE.
  5. Edward Glaeser & Janet Kohlhase, 2003. "Cities, regions and the decline of transport costs," Papers in Regional Science, Springer, vol. 83(1), pages 197-228, October.
  6. Tabuchi, Takatoshi, 1998. "Urban Agglomeration and Dispersion: A Synthesis of Alonso and Krugman," Journal of Urban Economics, Elsevier, vol. 44(3), pages 333-351, November.
  7. Takatoshi Tabuchi & Jacques-François Thisse, 2006. "Regional Specialization, Urban Hierarchy, And Commuting Costs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1295-1317, November.
  8. 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, June.
  9. Dao-Zhi Zeng, 2006. "Redispersion is different from dispersion: spatial economy of multiple industries," The Annals of Regional Science, Springer, vol. 40(2), pages 229-247, June.
  10. Krugman, Paul & Venables, Anthony J, 1993. "Integration, Specialization and Adjustment," CEPR Discussion Papers 886, C.E.P.R. Discussion Papers.
  11. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
  12. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
  13. Fujita, Masahisa & Mori, Tomoya & Henderson, J. Vernon & Kanemoto, Yoshitsugu, 2004. "Spatial distribution of economic activities in Japan and China," 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 65, pages 2911-2977 Elsevier.
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