Geography, Trade Patterns, and Economic Policy

February 1, 1994

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Format: Chicago

Carlos M. Asilis, and Luis Rivera-Batiz. Geography, Trade Patterns, and Economic Policy, (USA: International Monetary Fund, 1994) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents a geographical theory of location and interregional trade. Location is treated as an endogenous variable by firms, consumers and perfectly mobile workers in a two-sector economy. Space plays a central role owing to transportation costs, market access, and distance from polluting industrial centers. The model is used to examine: (1) aspects of a compensating-differential theory of regional unevenness, (2) the theoretical formulation of a gravity theory of trade patterns, (3) the geographic basis for industrial and environmental policy, and (4) the interaction between reductions in transportation costs, location patterns, and technological improvements.

Subject: Agricultural sector, Economic sectors, Labor, Manufacturing, National accounts, Transportation, Wages

Keywords: Agricultural sector, Asia and Pacific, Cost of living, Cost reduction, Eastern Europe, Global, Increasing returns, Increasing returns to scale, Manufacturing, North America, Resource allocation, Trade pattern, Transportation, Transportation cost, Wages, WP

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1994/016
Stock No:

WPIEA0161994
ISBN:

9781451843330
ISSN:

1018-5941

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