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| Author: | Bougheas, S. Demetriades, P. Morgenroth, L. |
| Title: | Infrastructure, transport costs and trade |
| Journal: | Journal of International Economics
1999 : FEB, VOL. 47:1, p. 169-190 |
| Index terms: | TRANSPORT COSTS TRADE INTERNATIONAL ECONOMICS |
| Language: | eng |
| Abstract: | This paper examines the role of infrastructure in a bilateral trade model with transport costs. Transport costs are assumed to depend inversely on the level of infrastructure. The accumulation of infrastructure, however, is subject to a resource cost technology which includes both fixed and variable components. It is shown that, depending on geography and endowments, equilibria with or without infrastructure can be obtained. |
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