Abstract
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.
Original language | English |
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Pages (from-to) | 711-753 |
Number of pages | 43 |
Journal | Journal of Economic Geography |
Volume | 22 |
Issue number | 4 |
DOIs | |
Publication status | Published - Jul 2022 |
Bibliographical note
Publisher Copyright:© 2021 The Author(s). Published by Oxford University Press. All rights reserved.
Funding
Funders | Funder number |
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Japan Society for the Promotion of Science | 22K01484 |
Keywords
- Firm location
- High-speed rail
- Japan
- Long-haul-economies
- Shinkansen