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Directional imbalance in transport prices and economic geography

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  • Takahashi, Takaaki

Abstract

This paper examines how and why transport prices become imbalanced with respect to the direction of shipments and how this affects economic geography. It is shown that the equilibrium transport price of the shipment in a particular direction is a nondecreasing function of the relative size of the embarkation region. Furthermore, we show that the directional imbalance in transport prices increases the likelihood of the symmetric pattern being stable and decreases the likelihood of the core-periphery patterns being sustainable. In short, the imbalance acts as a dispersion force.

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  • Takahashi, Takaaki, 2011. "Directional imbalance in transport prices and economic geography," Journal of Urban Economics, Elsevier, vol. 69(1), pages 92-102, January.
    • Handle: RePEc:eee:juecon:v:69:y:2011:i:1:p:92-102
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    2. Ishikawa, Jota & Tarui, Nori, 2018. "Backfiring with backhaul problems," Journal of International Economics, Elsevier, vol. 111(C), pages 81-98.
    3. Gokan, Toshitaka, 2013. "The location of manufacturing firms and imperfect information in transport market," IDE Discussion Papers 398, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Tsubota, Kenmei, 2015. "Agglomeration and directional imbalance of freight rates : the role of density economies in the transport sector," IDE Discussion Papers 488, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Kanehara, Daishoku & Kamei, Keita, 2019. "Transport Price, Product Differentiation and R&D in an Oligopoly," MPRA Paper 93148, University Library of Munich, Germany.
    6. Koo, Tay T.R. & Lim, Christine & Dobruszkes, Frédéric, 2017. "Causality in direct air services and tourism demand," Annals of Tourism Research, Elsevier, vol. 67(C), pages 67-77.
    7. Francesco Di Comite, 2018. "Transport liberalization and regional imbalances with endogenous freight rates," JRC Research Reports JRC92386, Joint Research Centre.
    8. ISHIKAWA, Jota & 石川, 城太 & TARUI, Nori & 樽井, 礼, 2015. "Backfiring with backhaul problems: Trade and Industrial Policies with Endogenous Transport Costs," Discussion paper series HIAS-E-12, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    9. Xu, Hangtian & Itoh, Hidekazu, 2016. "Density economies and transport geography: Evidence from the container shipping industry," MPRA Paper 75580, University Library of Munich, Germany.
    10. TAKATSUKA Hajime & Dao-Zhi ZENG & Laixun ZHAO, 2013. "Resource-based Regions, the Dutch Disease and City Development," Discussion papers 13001, Research Institute of Economy, Trade and Industry (RIETI).
    11. DongJoon Lee & Seonyoung Lim & Kangsik Choi, 2017. "Port privatization under Cournot vs. Bertrand competition: a third-market approach," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(6), pages 761-778, August.
    12. Xinmeng Li & Dao-Zhi Zeng, 2022. "Frictional unemployment, bargaining, and agglomeration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 151-179, February.
    13. Kiyoyasu Tanaka & Kenmei Tsubota, 2017. "Directional imbalance in freight rates: evidence from Japanese inter-prefectural data," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 217-232.
    14. Xu, Hangtian & Itoh, Hidekazu, 2018. "Density economies and transport geography: Evidence from the container shipping industry," Journal of Urban Economics, Elsevier, vol. 105(C), pages 121-132.
    15. Ishikawa, Jota & Tarui, Nori, 2021. "You can’t always get what you want: Protectionist policies with the transport sector," Economics Letters, Elsevier, vol. 207(C).
    16. Felix L. Friedt & Wesley W. Wilson, 2020. "Trade, transport costs and trade imbalances: An empirical examination of international markets and backhauls," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(2), pages 592-636, May.

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