Transport Costs and Urban Systems
The average costs of transporting goods in a national economy are one of thefactors that significantly contribute towards the shaping of the urban system. This paper pursues the question of what effect changes in transport costs (this can include a reduction as well as an increase) can have on the urban system. Various models based on the fundamental assumptions of New Economic Geography are applied The specific assumptions of these models are compared with one another and their results contrasted It is demonstrated that the modelling results, which in some cases are based upon very restrictive assumptions, appear to contradict one another in terms oftheirfindings, or, alternatively, that thefindings of these models should only be interpreted with regard to the specific questions that each pose. These include suburbanisation tendencies, the opening up of peripheral regions, and the concentration of company headquarters.
