A Chamberlinian Agglomeration Model with External Economies of Scale

Kurata, Hiroshi, Nomura, Ryoichi, Suga, Nobuhito

Description

We investigate the effects of a reduction in trade costs on industrial location and welfare in an economy with external economies of scale. We propose a Chamberlinian agglomeration model with footloose capital, which is analytically-solvable. With respect to industrial location, we demonstrate that a reduction in trade cost is likely to lead to agglomeration. With respect to welfare, we show that agglomeration makes a country with agglomeration better off, and the country without agglomeration better or worse off, depending on the degree of external economies of scale. We also prove that agglomeration makes the overall economy better off.

Journal

Discussion Paper, Series A

Discussion Paper, Series A 242 1-25, 2011-08

Graduate School of Economics and Business Administration, Hokkaido University

Keywords

Details 詳細情報について

CRID: 1050564288962784128

NII Article ID: 120003277550

HANDLE: 2115/46972

Text Lang: en

Article Type: departmental bulletin paper

Data Source

IRDB
CiNii Articles

Export