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Agglomeration and cross-border infrastructure

Author

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  • Puga, Diego

    (Madrid Institute for Advanced Studies (IMDEA) Social Sciences)

Abstract
This paper deals with the effects of cross-border transport infrastructure in the presence of agglomeration economies. Cross-border infrastructure is more likely to increase than to decrease inequalities between and within regions, and has not helped regional convergence in Europe. Under-investment due to spillovers, coordination failures, and the inadequacy of networks originally designed for national markets provide a role for supranational institutions. Hub-andspoke networks tend to increase urban primacy while cross-border transport connections tend to reduce it. Improvements in transport and communication allow firms to separate innovation, management and production, increasing efficiency and urban interdependence.

Suggested Citation

  • Puga, Diego, 2008. "Agglomeration and cross-border infrastructure," EIB Papers 9/2008, European Investment Bank, Economics Department.
    • Handle: RePEc:ris:eibpap:2008_009
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    Cited by:

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    More about this item

    Keywords

    transport; cross-border infrastructure; agglomeration; urban specialization;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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