Rising trade costs? Agglomeration and trade with endogenous transaction costs

Gilles Duranton and Michael Storper

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.

Keywords: Transaction costs; trade costs; transport costs; agglomeration; vertically linked industries (search for similar items in EconPapers)
JEL-codes: D23 D24 R12 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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http://eprints.lse.ac.uk/19898/ Open access version. (application/pdf)

Related works:
Journal Article: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Journal Article: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
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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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:19898

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