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Tekijä: | Bougheas, S. Demetriades, P. Morgenroth, L. |
Otsikko: | Infrastructure, transport costs and trade |
Lehti: | Journal of International Economics
1999 : FEB, VOL. 47:1, p. 169-190 |
Asiasana: | TRANSPORT COSTS TRADE INTERNATIONAL ECONOMICS |
Kieli: | eng |
Tiivistelmä: | 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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