Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs

Gilles Duranton and Michael Storper

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.

Keywords: Transaction costs; trade costs; transport costs; agglomeration; vertically linkedindustries (search for similar items in EconPapers)
JEL-codes: D23 D24 R12 (search for similar items in EconPapers)
Date: 2005-04
New Economics Papers: this item is included in nep-geo and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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https://cep.lse.ac.uk/pubs/download/dp0683.pdf (application/pdf)

Related works:
Journal Article: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Journal Article: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs (2005)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2005)
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