Deardorff, Alan V. - Institute of Economic Research, Hitotsubashi University - 2004
If trade costs matter for trade, and if distance matters for at least some trade costs, then location matters for trade … in this model, depending on trade costs compared to differences in autarky prices. The results are the following: For a … such a country is also important for the trade of the other countries. Finally, although a fall in trade costs increases …