Success in international trade depends, amongst other things, on distance from markets. Most new economic geography … models focus on the distance between countries. In contrast much less theorizing and empirical analysis have focused on how … paper we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an …

In this paper we claim that distance alone is a poor proxy for international transport costs in empirical studies. We … vary with two characteristics: with the distance between two locations and with the endogenous decision to invest in a more … the endogeneity of the investment decision. Our results confirm that transport prices are influenced by both the distance …

magnify the importance of lender-to-borrower distance. Our findings are also obtained with estimation techniques that allow …

assume that investors face costs of control that vary among sectors and increase in distance. The results show that (i … distance may have a non-monotonous effect on the likelihood of horizontal investments, and (iii) that globalization, if … understood as reducing distance, leads to more integration. …