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Toru Kikuchi
 
''Footloose Capital and the Locational Advantage of a Hub''
( 2008, Vol. 6 No.43 )
 
 
The purpose of this study is to illustrate, with a simple three-region (located on a line), two-good (homogeneous good/differentiated high-tech products), two-factor (labor/"footloose" capital) model, how falling transport costs can affect firms' location decisions and trade structure. It is shown that the locational advantage of a central hub is magnified via firms'' location decisions.
 
 
Keywords: Footloose Capital Hub Transport Costs
JEL: F1 - Trade: General
 
Manuscript Received : Oct 08 2008 Manuscript Accepted : Oct 09 2008

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