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Dispersion Forms: An Interaction Of Market Access, Competition, And Urban Costs

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  • Hajime Takatsuka
  • Dao‐Zhi Zeng

Abstract

ABSTRACT This paper analyzes a two‐region model including multiple industries with different transport costs. Two results are derived. First, dispersion occurs for small transport costs, but the specific dispersion patterns depend on the level of urban costs. This results from an interaction of the market‐access effect on consumers, the market‐access effect on firms, the competition effect, and the urban‐cost effect. Second, decreasing transport cost tends to let industries with lower transport costs disperse, although the shares of industries locating in the larger region are not in order of their transport costs. We further provide some empirical data concerning the second result.

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  • Hajime Takatsuka & Dao‐Zhi Zeng, 2009. "Dispersion Forms: An Interaction Of Market Access, Competition, And Urban Costs," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 177-204, February.
    • Handle: RePEc:bla:jregsc:v:49:y:2009:i:1:p:177-204
    DOI: 10.1111/j.1467-9787.2008.00588.x
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    Cited by:

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    2. Akamatsu, Takashi & Mori, Tomoya & Osawa, Minoru & Takayama, Yuki, 2017. "Spatial scale of agglomeration and dispersion: Theoretical foundations and empirical implications," MPRA Paper 80689, University Library of Munich, Germany.
    3. Hajime Takatsuka & Dao-Zhi Zeng, 2013. "Industrial configuration in an economy with low transportation costs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 593-620, October.
    4. Jian Wang & Junqian Xu, 2015. "Home market effect, spatial wages disparity: an empirical reinvestigation of China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(2), pages 313-333, December.

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