Geography, Trade Patterns, and Economic Policy

44 Pages Posted: 15 Feb 2006

See all articles by Carlos Asilis

Carlos Asilis

affiliation not provided to SSRN

Luis A. Rivera-Batiz

Universidad de Puerto Rico - Graduate School of Business Administration

Date Written: February 1994

Abstract

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.

JEL Classification: D50, Q10, J61

Suggested Citation

Asilis, Carlos and Rivera-Batiz, Luis A., Geography, Trade Patterns, and Economic Policy (February 1994). IMF Working Paper No. 94/16, Available at SSRN: https://ssrn.com/abstract=883441

Carlos Asilis (Contact Author)

affiliation not provided to SSRN

No Address Available

Luis A. Rivera-Batiz

Universidad de Puerto Rico - Graduate School of Business Administration ( email )

Ponce De Leon Avenue
00931-3300
Puerto Rico

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