Abstract
This paper presents a multi-region model based on the NEG with transport costs of materials. Consumable goods are differentiated among firms, and materials are differentiated among regions. Results show that (i) economic activities increase agglomeration tendencies as the transport cost ratio (materials/goods) decreases, and (ii) location pattern changes, dispersion–agglomeration–dispersion, with a decline of transport costs. Furthermore, introducing distributions of land and social capital in ten Asian countries, simulation results show that the location of economic activities traces a course of four stages: (i) dispersion, (ii) concentration to China, (iii) concentration to India, and (iv) redispersion.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
