Footloose Capital and Locational Advantage of a Hub

Toru Kikuchi

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this study is to illustrate, with a simple three-region (located on a line), two-good (homogeneous good/differentiated high-tech products), two-factor (labor/``footloose'' capital) model, how falling transport costs can affect firms' location decisions and trade structure. It is shown that the locational advantage of a central hub is magnified via firms' location decisions.

JEL-codes: F12 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-ure
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Related works:
Journal Article: Footloose Capital and the Locational Advantage of a Hub (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:10415

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