Transportation Costs and the Spatial Organization of Economic Activity

Stephen Redding and Matthew Turner

No 10038, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper surveys the theoretical and empirical literature on the relationship between the spatial distribution of economic activity and transportation costs. We develop a multi-region model of economic geography that we use to understand the general equilibrium implications of transportation infrastructure improvements within and between locations for wages, population, trade and industry composition. Guided by the predictions of this model, we review the empirical literature on the effects of transportation infrastructure improvements on economic development, paying particular attention to the use of exogenous sources of variation in the construction of transportation infrastructure. We examine evidence from different spatial scales, between and within cities. We outline a variety of areas for further research, including distinguishing reallocation from growth and dynamics.

Keywords: Highways; Market access; Railroads; Transportation (search for similar items in EconPapers)
JEL-codes: F15 R12 R40 (search for similar items in EconPapers)
Date: 2014-06
New Economics Papers: this item is included in nep-geo, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (50)

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Related works:
Chapter: Transportation Costs and the Spatial Organization of Economic Activity (2015)
Working Paper: Transportation Costs and the Spatial Organization of Economic Activity (2014)
Working Paper: Transportation costs and the spatial organization of economic activity (2014)
Working Paper: Transportation Costs and the Spatial Organization of Economic Activity (2014)
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