Abstract.
In this paper, based on the recent advances in the new economic geography (e.g., Fujita et al. [12]), we analyze impacts of transport costs on the spatial patterns of economic agglomeration. We first identify prototypes from the existing models, and explain the mechanism of how transport costs influence the balance between economic forces of agglomeration and dispersion. We then investigate the transformation of the agglomeration/dispersion patterns given gradually decreasing transport costs for different goods.
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Received: Received: July 2004 / Accepted: January 2005, Accepted: Received: July 2004 / Accepted: January 2005,
JEL Classification:
R12
Tomoya Mori: Correspondence to
The authors are grateful to David Bernstein, Tatsuo Hatta, Komei Sasaki, Tony E. Smith, and two anonymous referees for their valuable comments. This research is partly supported by The Grant in Aid for Research 08403001 of Ministry of Education, Science and Culture in Japan, the Murata Science Foundation, and WESCO Civil Engineering Technology Foundation.
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Fujita, M., Mori, T. Transport development and the evolution of economic geography. PEJ 4, 129–156 (2005). https://doi.org/10.1007/s10258-005-0042-6
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DOI: https://doi.org/10.1007/s10258-005-0042-6