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Interregional trade, industrial location and import infrastructure

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Abstract

The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one region’s import infrastructure can affect firms’ location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import infrastructure, one region might divert high-tech industries to another region. This effect reduces the incentive to improve import infrastructure.

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Notes

  1. See, for example, Costa-Font and Rodriguez-Oreggia (2005), Limao and Venables (2001), and Mori and Nishikimi (2002).

  2. See, for example, Fujita et al. (1999), Ottaviano and Thisse (2004), and Behrens et al. (2007).

  3. See World Bank (2004) for discussion.

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Authors and Affiliations

  1. Graduate School of Economics, Kobe University, Kobe, Hyogo, Japan

    Toru Kikuchi

  2. Kyoto Institute of Economic Research, Kyoto University, Kyoto, Japan

    Kazumichi Iwasa

Authors
  1. Toru Kikuchi
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  2. Kazumichi Iwasa
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Correspondence to Toru Kikuchi.

Additional information

We would like to the anonymous referees for constructive comments.

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Kikuchi, T., Iwasa, K. Interregional trade, industrial location and import infrastructure. Int Econ Econ Policy 6, 361–365 (2009). https://doi.org/10.1007/s10368-009-0142-3

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  • DOI: https://doi.org/10.1007/s10368-009-0142-3

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