Kikuchi, Toru (2008): Footloose Capital and Locational Advantage of a Hub. Unpublished.
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The purpose of this study is to illustrate, with a simple three-region (located on a line), two-good (homogeneous good/differentiated high-tech products), two-factor (labor/``footloose'' capital) model, how falling transport costs can affect firms' location decisions and trade structure. It is shown that the locational advantage of a central hub is magnified via firms' location decisions.
| Item Type: | MPRA Paper |
|---|---|
| Language: | English |
| Subjects: | F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies |
| ID Code: | 10415 |
| Deposited By: | Toru Kikuchi |
| Deposited On: | 11. Sep 2008 10:05 |
| Last Modified: | 11. Sep 2008 10:05 |
| References: | Ago, T., I. Isono, and T. Tabuchi (2006) ``Locational Disadvantage of the Hub,'' Annals of Regional Science, Vol. 40, pp. 819--848. Baldwin, R., R. Forslid, P. Martin, G. Ottaviano, and F. Robert-Nicoud (2003) Economic Geography and Public Policy, Princeton University Press. Endoh, M., K. Hamada, and K. Shimomura (2008) ``Can a Preferential Trade Agreement Benefit Neighbor Countries without Compensating Them?'' Economics Department Working Paper No. 961, Yale University. |
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