Hans R A Koster, Takatoshi Tabuchi, Jacques-François Thisse
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To be connected or not to be connected? The role of long-haul economies
We investigate whether localities gain or lose employment when there are connected to a transportation network, such as a high-speed railway line. We argue that long-haul economies—implying that the marginal transportation cost decreases with network distance—play a pivotal role in understanding the location choices of firms. We develop a new spatial model to show that improvements in transportation infrastructure have nontrivial impacts on the location choices of firms. Using data on Japan’s Shinkansen, we show that ‘in-between’ municipalities that are connected to the Shinkansen witness a sizable decrease in employment.
期刊介绍:
The aims of the Journal of Economic Geography are to redefine and reinvigorate the intersection between economics and geography, and to provide a world-class journal in the field. The journal is steered by a distinguished team of Editors and an Editorial Board, drawn equally from the two disciplines. It publishes original academic research and discussion of the highest scholarly standard in the field of ''economic geography'' broadly defined. Submitted papers are refereed, and are evaluated on the basis of their creativity, quality of scholarship, and contribution to advancing understanding of the geographic nature of economic systems and global economic change.