Date
2005
Publisher city
Paris
Publisher
Université Paris-Dauphine
Collection title
Cahiers de recherche EURISCO
Collection Id
2005-05
Dewey
Economie internationale
Sujet
inequality; Economic Geography; trade costs; agglomeration
JEL code
F12; R12; R13
Type
Document de travail / Working paper
Item number of pages
28
Abstract (EN)
Within a 2 Country-4 Region setting we study the impact of a reduction in international transport costs over the localisation of firms inside countries.We find that even when countries are symmetrical, but as long as regions within countries are not entirely identical (whatever the differences), a decrease of international transport costs leads to more agglomeration in one of the regions. We investigate two cases, one in which regions within countries are of di.erent sizes, and the other where one of the regions has some comparative advantage in the production of the industrial good.