A MODEL OF REGIONAL DEVELOPMENT WITH AN APPLICATION TO TAIWAN

Eric Heikkila

Review of Urban & Regional Development Studies, 1995, vol. 7, issue 2, 153-166

Abstract: This paper develops and applies a model to investigate questions pertinent to Taiwan's six year development plan. The model is designed to explore the implications of transportation versus industrial infrastructure investments on Taiwan's regional development objectives. Accessibility to population centers and related activities is seen as a critical factor in determining a location Is economic development potential. The model postulates an adjustment process that is geared to increasing economic welfare subject to adjustment costs. An empirical illustration using data from Taiwan suggest that Taipei's primacy is likely to increase over the coming decades. Across the board transportation improvements are shown to favor the island's central regions at the expense of Taipei and Kaohsiung.

Date: 1995
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