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On high-speed connections and the location of activities

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Peeters, Dominique [UCL] Thomas, Isabelle [UCL] Thisse, Jacques-François [UCL]

We study the impact of a high-speed connection between two regional economies on the location of production activities, using the simple plant-location problem and toy networks. As expected, the relative value of fixed production costs to transportation costs is crucial in the determination of facility locations. Less expected is the fairly strong instability observed in the structure of the locational pattern of facilities when the relative value of the fixed costs changes. The construction of a piece of infrastructure has an impact on the regional structure of production provided that it allows for a substantial reduction in transport spending. When scale economies in production are large, one regional center swallows up the other and may eventually become the only production center within the integrated economy.

Document type Article de périodique (Journal article)
Publication date 2000
Language Anglais
Journal information "Environment and Planning A : international journal of urban and regional research" - Vol. 32, no. 12, p. 2097-2112 (Décembre 2000)
Peer reviewed yes
Publisher Pion Ltd. (London, United Kingdom)
issn 0308-518X
Publication status Publié
Affiliations UCL - EUEN/CORE - Center for operations research and econometrics
UCL - EUEN/CORE - Center for operations research and econometrics
UCL - EUEN/CORE - Center for operations research and econometrics
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Bibliographic reference Peeters, Dominique ; Thomas, Isabelle ; Thisse, Jacques-François. On high-speed connections and the location of activities. In: Environment and Planning A : international journal of urban and regional research, Vol. 32, no. 12, p. 2097-2112 (Décembre 2000)
Permanent URL http://hdl.handle.net/2078.1/23296