Directional imbalance in transport prices and economic geography

Takaaki Takahashi ()

Journal of Urban Economics, 2011, vol. 69, issue 1, 92-102

Abstract: This paper examines how and why transport prices become imbalanced with respect to the direction of shipments and how this affects economic geography. It is shown that the equilibrium transport price of the shipment in a particular direction is a nondecreasing function of the relative size of the embarkation region. Furthermore, we show that the directional imbalance in transport prices increases the likelihood of the symmetric pattern being stable and decreases the likelihood of the core-periphery patterns being sustainable. In short, the imbalance acts as a dispersion force.

Keywords: Behavior; of; transport; firms; Break; point; Export; price; effect; Import; price; effect; Joint; production; Marginal; cost; of; shipment; Return; constraint; Substitution; between; imports; and; domestic; products; Sustain; point (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:69:y:2011:i:1:p:92-102

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