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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. 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.
  2. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April.
  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. Puga, Diego & Venables, Anthony J., 1996. "The Spread of Industry: Spatial Agglomeration in Economic Development," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 440-464, December.
  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 & THISSE, Jacques-François, 2003. "Regional specialization, urban hierarchy, and commuting costs," CORE Discussion Papers 2003060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. 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.
  8. 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).
  9. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  10. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  11. 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.
  12. 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.
  13. 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.
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