Impacts of improved transport on regional market access

Abstract

This article presents a pedagogic review and explanation of a core idea in location theory. Central to the analysis is the von Thünen model, a cornerstone of agricultural land use theory. The model is adapted to non-uniform transport surfaces, enabling an exploration of how improved transport corridors, such as roads and canals, alter economic landscapes. The article explores the influence of enhanced transport corridors within agricultural growing regions and provides a conceptual framework for understanding the impacts of improved transport infrastructure. By examining incremental changes of varying effectiveness, we shed light on the multifaceted effects of these corridors. Using a spatial-price equilibrium model, findings reveal and quantify how these improvements contribute to increased supply, price moderation, and cost reduction. Networks that provide full connectivity with large reductions in transport cost have the greatest effect, as might be expected, but there are subtle spatial zones displaying differential impacts.