Comment on “Urban Concentration: The Role of Increasing Returns and Transport Costs,” by Krugman

The problem of consolidation of goods for the provider of logistic services, which is a third part that delivers goods from many suppliers to one business client in time horizon was analysed in this article. Every parcel has a fixed date of reception in the source and delivery schedule in a destination. In the age of highly developed economy, time pressure and costs, outsourcing is a condition necessary to improve the functioning of enterprises. New logistic chains, networks of terminals and intermodal connections are built every year to reduce the transport costs and improve the whole process. In this article, the authors presented the benefits resulting from consolidation of cargos in the road transport. Special emphasis was put on determination of the role of the transport costs reduction using the cargo consolidation services.

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Wage Inequality on the Rise: The Role of Workers' Characteristics

Journal of Income Distribution ◽

10.25071/1874-6322.40320 ◽

2016 ◽

pp. 99-123

Author(s):

Guillermo Alves ◽

Matías Brum ◽

Mijail Yapor

Keyword(s):

Human Capital ◽

Public Sector ◽

Income Inequality ◽

Wage Inequality ◽

Increasing Returns ◽

Developing Economy ◽

Public Sector Employment ◽

The World

In recent decades, wage inequality has been an important factor behind the rise in income inequality around the world. The leading explanation for increased wage inequality has been the increasing returns to human capital, usually attributed to changing technology and globalization. This article studies the rise in wage inequality in Uruguay, a small open developing economy. In contrast with popular explanations, our results highlight a strong and gradual inequalizing effect of changes in workers’ characteristics, such as increased schooling and age, decline of public sector employment and contraction of employment in manufacturing together with increased employment in services.

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Assessing the role of port efficiency as a determinant of maritime transport costs: evidence from Canada

Maritime Economics & Logistics ◽

10.1057/s41278-019-00135-5 ◽

2019 ◽

Vol 22 (4) ◽

pp. 562-584

Author(s):

Qiao Lei ◽

Chris Bachmann

Keyword(s):

Maritime Transport ◽

Transport Costs ◽

Port Efficiency

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Spatial Spillover Effects of Agricultural Transport Costs in Peru

10.20944/preprints202112.0200.v1 ◽

2021 ◽

Author(s):

Pedro Herrera-Catalán ◽

Coro Chasco ◽

Máximo Torero

Keyword(s):

Spatial Configuration ◽

Spillover Effects ◽

Equilibrium Analysis ◽

New Economic Geography ◽

Spatial Equilibrium ◽

Transport Costs ◽

Economic Activities ◽

Flow Models ◽

Spatial Spillovers

The role of agricultural transport costs in core-periphery structures has habitually been ignored in New Economic Geography (NEG) models. This is due to the convention of treating the agricultural good as the numéraire, thus implying that agricultural transportation costs are assumed to be zero in these models. For more than three decades, this has been the standard setting in spatial equilibrium analysis. The paper examines the effects of agricultural transport costs on the spatial organisation of regional structures in Peru. In doing so, the Krugman’s formulation of iceberg transport costs is modified to introduce the agricultural transport costs into the dynamic of the NEG models. We use exploratory spatial flow data analysis methods and non-spatial and spatial origin-destination flow models to explore how the regional spatial structure change when real transportation data for agricultural goods is included into the iceberg transport costs formulation. We show that agricultural transport costs generate flows that are systematically associated with flows to or from nearby regions generating thus the emergence of spatial spillovers across Peruvian regions. The results of the paper support the contention that NEG models have overshadowed the role of agricultural transport costs in determining the spatial configuration of economic activities.

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