Why an Economic Core: Domestic Transport Costs

Posted: 22 Jun 2009

See all articles by Rodney Ramcharan

Rodney Ramcharan

University of Southern California, Marshall School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: July 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 article uses new subregional 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 (July 2009). Journal of Economic Geography, Vol. 9, Issue 4, pp. 559-581, 2009. Available at SSRN: https://ssrn.com/abstract=1422427 or http://dx.doi.org/lbn045

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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