Kikuchi, Toru (2008): Footloose Capital and Locational Advantage of a Hub.
Download (113kB) | Preview
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|
|Original Title:||Footloose Capital and Locational Advantage of a Hub|
|Subjects:||F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation|
|Depositing User:||Toru Kikuchi|
|Date Deposited:||11. Sep 2008 08:05|
|Last Modified:||12. Feb 2013 12:10|
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.