Article
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Spatial Spillover Effects of Agricultural Transport Costs in Peru
Version 1
: Received: 10 December 2021 / Approved: 13 December 2021 / Online: 13 December 2021 (12:38:33 CET)
A peer-reviewed article of this Preprint also exists.
Herrera-Catalán, P.; Chasco, C.; Torero, M. Spatial Spillover Effects of Agricultural Transport Costs in Peru. Land 2022, 11, 58. Herrera-Catalán, P.; Chasco, C.; Torero, M. Spatial Spillover Effects of Agricultural Transport Costs in Peru. Land 2022, 11, 58.
Abstract
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.
Keywords
Agricultural Transport Costs; New Economic Geography; Spatial Spillovers; Agglomeration Effects; Origin-Destination Flow Models
Subject
Business, Economics and Management, Economics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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