A Spatial Equilibrium Model for Plant Location and Interregional Trade

Matthias von Oppen and John T. Scott

American Journal of Agricultural Economics, 1976, vol. 58, issue 3, 437-445

Abstract: Combination of a single-equation location model and interregional trade analysis into one model provides an effective tool to simultaneously determine regionally optimal numbers and sizes of processing plants and optimal interregional trading and pricing. The results of an earlier empirical application of the model on the prospective soybean industry in India are reviewed after four years of actual development. Private industry is allocating its processing plants in line with the pattern computed by the model, and a comparatively costly plan of arbitrarily establishing one government plant at an arbitrary location has not been implemented.

Date: 1976
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:58:y:1976:i:3:p:437-445.

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