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Regional Specialization via Differences in Transport Costs

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  • Hajime Takatsuka

    ()

  • Dao-Zhi Zeng

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Abstract

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.

Suggested Citation

  • Hajime Takatsuka & Dao-Zhi Zeng, 2005. "Regional Specialization via Differences in Transport Costs," ERSA conference papers ersa05p448, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa05p448
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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/448.pdf
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    5. 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.
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    13. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
    14. 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.
    15. 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.
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