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Ports, Trade, Employment, And Local Factor Prices An Urban Equilibrium Theory

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In this study, I develop a multi-sector urban equilibrium model of port cities that allows us to consider the disaggregated employment and factor price effects of domestic and international transportation. The model resolves the theoretical ambiguity of aggregate urban equilibrium effects in response to changes in the utilisation of port infrastructure by considering the opposing industry-specific dynamics across manufacturing, transport, and service sectors. The research highlights the simultaneity between trade, transport, and the urban economy, and delivers an estimable system of equations to overcome this issue.

Document Type: Research Article

Affiliations: Macalester College, Department of Economics, 1600 Grand Avenue, Saint Paul, MN 55105

Publication date: October 1, 2022

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