IDEAS home Printed from https://ideas.repec.org/a/bla/presci/v85y2006i3p379-399.html
   My bibliography  Save this article

Do changes in transport costs and tariffs shape the space‐economy in the same way?

Author

Listed:
  • Kristian Behrens

Abstract

. We investigate how alternative ways of modelling trade costs affect the main results of “new” economic geography. In order to do so, we compare the impacts of falling transport costs and decreasing tariffs on the spatial distribution of economic activities. Our analysis reveals that tariffs and transport costs largely play symmetric roles, in the sense that a decrease in either of them favours agglomeration. Yet, tariffs generate rents which, once redistributed or used to finance local public goods, make dispersion sustainable over a larger range of parameter values. Therefore, decreasing transport costs are more likely to trigger agglomeration than decreasing tariffs.

Suggested Citation

  • Kristian Behrens, 2006. "Do changes in transport costs and tariffs shape the space‐economy in the same way?," Papers in Regional Science, Wiley Blackwell, vol. 85(3), pages 379-399, August.
    • Handle: RePEc:bla:presci:v:85:y:2006:i:3:p:379-399
    DOI: 10.1111/j.1435-5957.2006.00093.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1435-5957.2006.00093.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1435-5957.2006.00093.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Behrens, Kristian & Gaigne, Carl & Ottaviano, Gianmarco I.P. & Thisse, Jacques-Francois, 2007. "Countries, regions and trade: On the welfare impacts of economic integration," European Economic Review, Elsevier, vol. 51(5), pages 1277-1301, July.
    2. Thisse, Jacques-François & Ottaviano, Gianmarco & Gaigné, Carl & Behrens, Kristian, 2003. "Inter-regional and International Trade: Seventy Years After Ohlin," CEPR Discussion Papers 4065, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
    2. Olga Alonso‐Villar, 2008. "A model of economic geography with demand‐pull and congestion costs," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 261-276, June.
    3. César Ducruet & Hidekazu Itoh & Olivier Joly, 2015. "Ports and the local embedding of commodity flows," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 607-627, August.
    4. Kristian Behrens & Frédéric Robert‐Nicoud, 2009. "Krugman's Papers in Regional Science: The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well‐deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    5. Miren Lafourcade & Jacques-François Thisse, 2008. "New economic geography: A guide to transport analysis," Working Papers halshs-00586878, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beltramo, Theresa, 2010. "Changes in Bilateral Trade Costs between European Union Member States & Major Trading Partners: An Empirical Analysis from 1989 - 2006," MPRA Paper 24259, University Library of Munich, Germany.
    2. Vasco Leite & Sofia Castro & João Correia-da-Silva, 2009. "The core periphery model with asymmetric inter-regional and intra-regional trade costs," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 8(1), pages 37-44, April.
    3. Oded Stark & Franz Rendl & Marcin Jakubek, 2012. "The merger of populations, the incidence of marriages, and aggregate unhappiness," Journal of Evolutionary Economics, Springer, vol. 22(2), pages 331-344, April.
    4. Kristian Behrens & Carl Gaigné, 2006. "Developing the "outermost regions" of Europe: some lessons from economic geography," Working Papers hal-02285630, HAL.
    5. Redding, Stephen J., 2016. "Goods trade, factor mobility and welfare," Journal of International Economics, Elsevier, vol. 101(C), pages 148-167.
    6. Alberto Díaz Dapena & Esteban Fernández Vázquez & Rafael Garduño Rivera & Fernando Rubiera Morollón, 2015. "Does Trade Imply Convergence? Analyzing The Effect of NAFTA on The Local Convergence in Mexico," Working Papers DTE 591, CIDE, División de Economía.
    7. Hsu, Wen-Tai & Lu, Yi & Luo, Xuan & Zhu, Lianming, 2023. "Foreign direct investment and industrial agglomeration: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 610-639.
    8. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
    9. Kazumichi Iwasa & Toru Kikuchi, 2011. "Software Provision and the Impact of Market Integration," Review of International Economics, Wiley Blackwell, vol. 19(4), pages 685-696, September.
    10. Kristian Behrens & W. Mark Brown & Théophile Bougna, 2018. "The World Is Not Yet Flat: Transport Costs Matter!," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 712-724, October.
    11. Thisse, Jacques-François & Proost, Stef, 2015. "Skilled Cities, Regional Disparities, and Efficient Transport: The state of the art and a research agenda," CEPR Discussion Papers 10790, C.E.P.R. Discussion Papers.
    12. He, Weijun & Wang, Bo & Danish, & Wang, Zhaohua, 2018. "Will regional economic integration influence carbon dioxide marginal abatement costs? Evidence from Chinese panel data," Energy Economics, Elsevier, vol. 74(C), pages 263-274.
    13. Ugo Fratesi, 2008. "Regional policy from a supra-regional perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(3), pages 681-703, September.
    14. Juan Labraga, 2009. "Política Comercial y Política de Infraestructura en el MERCOSUR," IDB Publications (Working Papers) 9328, Inter-American Development Bank.
    15. Marius Brülhart & Matthieu Crozet & Pamina Koenig, 2004. "Enlargement and the EU Periphery: The Impact of Changing Market Potential," The World Economy, Wiley Blackwell, vol. 27(6), pages 853-875, June.
    16. Pedro Moncarz & Michael Bleaney, 2010. "The Regional Impact of Trade Liberalization in a Model with Congestion Costs a la Helpman," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 935-947.
    17. Xu, Yang & Yang, Xi, 2021. "Access to ports and the welfare gains from domestic transportation infrastructure," Journal of Urban Economics, Elsevier, vol. 126(C).
    18. CRESPO, Nuno & FONTOURA, Maria Paula, 2013. "Regional Integration And Internal Economic Geography - An Empirical Evaluation With Portuguese Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 99-116.
    19. K. Yamamoto & T. Morita & F. Cerina, 2013. "Integration and Welfare with Horizontal Multinationals," Working Paper CRENoS 201307, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    20. Margarita Ilinca Andrada, 2024. "The Impact Of Current Global Changes On Regional And Local Economies," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 175-183, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:presci:v:85:y:2006:i:3:p:379-399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.