Is remoteness a locational disadvantage?
(2006) Journal of Economic Geography — Vol. 6, n° 3, p. 347-368 (2006)
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- Authors
- Abstract
- We study the impacts of changes in international trade and domestic transport costs on the internal geography of countries in the presence of geographical asymmetries. To do so, we develop a two-country four-region model in which one country has a region that exhibits a 'geographical advantage' in terms of better access to the other country's markets. Our analysis reveals that, in equilibrium, the space-economies of the trading partners are interdependent and that agglomeration in one country reduces the occurrence of agglomeration in the other, thus showing that physical geography suffices to build strong connections between the two space-economies. We also show that remoteness need not be a geographical disadvantage since a landlocked region may well be the location that attracts the larger share of firms. This is so when internal transport costs are high and, therefore, act as a barrier to competition from abroad.
- Affiliations
Université du Québec à Montréal Department of Economics Institut National de la Recherche Agronomique UMR SMART University of Bologna Department of Economics
Citations
Behrens, K., Gaigne, C., Ottaviano, G., & Thisse, J.-F. (2006). Is remoteness a locational disadvantage? Journal of Economic Geography, 6(3), 347-368. https://hdl.handle.net/2078.5/250033 (Original work published 2006)