 Is remoteness a locational disadvantage ?Kristian Behrens (), Carl Gaigne, Gianmarco Ottaviano and Jacques Thisse Post-Print from HAL Abstract: We study the impacts of changes in international trade and domestic transport costs on the internal geography of countries in the presence of geographical asymmetries. To do so, we develop a two-country four-region model in which one country has a region that exhibits a ‘geographical advantage' in terms of better access to the other country's markets. Our analysis reveals that, in equilibrium, the space-economies of the trading partners are interdependent and that agglomeration in one country reduces the occurrence of agglomeration in the other, thus showing that physical geography suffices to build strong connections between the two space-economies. We also show that remoteness need not be a geographical disadvantage since a landlocked region may well be the location that attracts the larger share of firms. This is so when internal transport costs are high and, therefore, act as a barrier to competition from abroad. Keywords: AGGLOMERATION; ECONOMIC GEOGRAPHY; INTERNATIONAL TRADE; TRADE AND TRANSPORT COST; LOCATIONAL ADVANTAGE (search for similar items in EconPapers) Published in Journal of Economic Geography, 2006, 6 (3), pp.347-368. ⟨10.1093/jeg/lbi024⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02416854 DOI: 10.1093/jeg/lbi024 Access Statistics for this paper More papers in Post-Print from HAL |
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