English, Article edition: Changes in transport and non-transport costs: Local vs global impacts in a spatial network Behrens, Kristian; Lamorgese, Andrea R.; Ottaviano, Gianmarco I.P.; ...

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Changes in transport and non-transport costs: Local vs global impacts in a spatial network
Author
  • Behrens, Kristian
  • Lamorgese, Andrea R.
  • Ottaviano, Gianmarco I.P.
  • Tabuchi, Takatoshi
Physical Description
  • article
Notes
  • We develop a multi-country Dixit-Stiglitz trade model and analyze how industry location and welfare respond to changes in: (i) transport frictions (e.g., infrastructure, transportation technology); and (ii) non-transport frictions (e.g., tariffs, standards and regulations). We show that changes in non-transport frictions, which are usually origin-destination specific, do not allow for any clear prediction as to changes in industry location and welfare; whereas changes in transport frictions, which are usually not origin-destination specific, may allow for such predictions. In particular, we show that reductions in transport frictions occurring at links around which the spatial network is locally a tree are Pareto welfare improving.
  • Trade frictions Multi-country trade models Monopolistic competition Spatial networks International integration
  • RePEc:eee:regeco:v:37:y:2007:i:6:p:625-648
Language
  • English
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