Rising trade costs? Agglomeration and trade with endogenous transaction costs

Gilles Duranton () and Michael Storper

Canadian Journal of Economics, 2008, vol. 41, issue 1, pages 292-319

Abstract: costs. In a model of industry location with endogenous transaction costs that seeks to replicate features from the machinery industry, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade. The subtle relationship between (endogenous) transport costs and the sensitivity of trade to distance is also explored.

JEL-codes: D23 R12 (search for similar items in EconPapers)
Date: 2008
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Related works:
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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