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Discussion Paper Details

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Full Details

Title: Geographical Disadvantage: A Heckscher-Ohlin-Von Thunen model of International Specialization

Author(s): Nuno Limão and Anthony Venables

Publication Date: December 1999

Keyword(s): Specialization, Trade and Transport Costs

Programme Area(s): International Trade and Regional Economics

Abstract: We analyze the trade and production patterns of countries located at varying distances from an economic centre. Exports and imports of final and intermediate goods bear transport costs that increase with distance. We show how production and trade depend both on factor endowments and factor intensities, and on distance and the transport intensities of different goods. Countries divide into zones with different trade patterns, some export oriented and others import substituting. We study the implications of distance for factor prices and real incomes, the effects of changes in transport costs, and the locational choice of new activities.

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Bibliographic Reference

Limão, N and Venables, A. 1999. 'Geographical Disadvantage: A Heckscher-Ohlin-Von Thunen model of International Specialization'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2305