Why an Economic Core: Domestic Transport Costs

32 Pages Posted: 31 Jan 2009 Last revised: 25 Feb 2009

See all articles by Rodney Ramcharan

Rodney Ramcharan

University of Southern California, Marshall School of Business

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Date Written: January 29, 2009

Abstract

What determines the spatial distribution of economic activity? And why is economic activity sometimes "lumpy", distributed in a core-periphery pattern in some countries? This paper uses new sub regional data on the spatial distribution of economic activity for a large cross section of countries, as well as information on roads, rails and surface topography to help understand the role of domestic transport costs in shaping economic geography. The evidence suggests a significant role for physical geography and transport costs in determining the location of economic activity. Countries with rougher surfaces have less developed road and rail transport networks, and greater spatial concentration of economic activity.

Keywords: Spatial Concentration, Domestic Transport Costs

JEL Classification: R12, R40, F12

Suggested Citation

Ramcharan, Rodney, Why an Economic Core: Domestic Transport Costs (January 29, 2009). Journal of Economic Geography, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1334726

Rodney Ramcharan (Contact Author)

University of Southern California, Marshall School of Business ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

HOME PAGE: http://https://sites.google.com/site/rodneyramcharan/

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