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Exhaustible resources flows in a spatial context

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  • Octave Keutiben

    (Université de Moncton)

Abstract

Using a spatial model à la Hotelling, this paper examines the evolution over time of the pattern of resource flows between two production sites (countries or regions) which differ in terms of their production technology, their geographical size, and their endowment of some nonrenewable natural resource. Besides the traditional explanations of comparative advantage and factor endowments, the model emphasizes the crucial role of geographical size in the determination of the equilibrium resource flows patterns. The unit cost of transport is shown to play a decisive role in determining whether the international asymmetry in terms of geographical sizes of countries has a greater influence than the other two factors. Interestingly, the model explains why a relatively resource rich country, even with the lowest mining cost, may well be a net importer of the resource, contrary to what is to be expected in a spaceless context.

Suggested Citation

  • Octave Keutiben, 2018. "Exhaustible resources flows in a spatial context," Letters in Spatial and Resource Sciences, Springer, vol. 11(1), pages 71-83, March.
    • Handle: RePEc:spr:lsprsc:v:11:y:2018:i:1:d:10.1007_s12076-018-0201-x
    DOI: 10.1007/s12076-018-0201-x
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    References listed on IDEAS

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    More about this item

    Keywords

    Exhaustible resources flows; Geographical size; Hotelling space; Transport costs;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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