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International Integration And Regional Inequalities: How Important Is National Infrastructure?

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  • KRISTIAN BEHRENS

Abstract

We investigate how international trade and trade policy possibly affect the regional distribution of economic activities within a country involved in a process of economic integration. Our analysis reveals that the impact of decreasing international trade costs on the spatial distribution of economic activities strongly depends on the structure of trade flows and the value of transport costs internal to the country. Whereas trade liberalization in developing countries with poor infrastructure and mostly autarkic regions may exacerbate spatial inequalities, countries with better infrastructure and larger volumes ofinterregional trade may experience a more balanced geographical development.

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File URL: http://hdl.handle.net/10.1111/j.1467-9957.2009.02151.x
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Bibliographic Info

Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 79 (2011)
Issue (Month): 5 (09)
Pages: 952-971

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Handle: RePEc:bla:manchs:v:79:y:2011:i:5:p:952-971

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  1. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  2. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Boston College Working Papers in Economics 593, Boston College Department of Economics.
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Citations

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Cited by:
  1. Olga Alonso-Villar, 2006. "A Reflection On The Effects Of Transport Costs Within The New Economic Geography," Working Papers 57, ECINEQ, Society for the Study of Economic Inequality.
  2. Xi Yang & Nobuaki Hamaguchi, 2013. "Trade infrastructure and firm location under Cournot competition," The Annals of Regional Science, Springer, vol. 50(1), pages 153-167, February.
  3. Candau Fabien, 2005. "Lumpy World and Race to the Bottom," International Trade 0508008, EconWPA, revised 01 Feb 2006.
  4. repec:idb:brikps:31178 is not listed on IDEAS
  5. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia & Iryna Sushko, 2014. "Regional integration, international liberalisation and the dynamics of industrial agglomeration," Department of Economics Working Papers wuwp164, Vienna University of Economics, Department of Economics.
  6. Barrientos Marín, Jorge & Lotero Contreras, Jorge, 2009. "Evolución y determinantes de las exportaciones industriales regionales: evidencia empírica para Colombia, 1977-2002," BORRADORES DEPARTAMENTO DE ECONOMÍA 008099, UNIVERSIDAD DE ANTIOQUIA - CIE.
  7. Mauricio Mesquita Moreira, 2006. "IIRSA Economic Fundamentals," IDB Publications 9201, Inter-American Development Bank.
  8. Sanguinetti, Pablo & Volpe Martincus, Christian, 2009. "Tariffs and manufacturing location in Argentina," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 155-167, March.

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