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articles: Trade policy and regional inequalities

Author

Listed:
  • Elisenda Paluzie

    (University of Barcelona, Department of Economic Theory, Av. Diagonal 690, 08034 Barcelona, Catalonia, Spain)

Abstract

This article aims to analyze the effects of trade policies on the pattern of regional inequalities within a country. It is inspired, firstly, by the debate concerning the role of protectionist policies in the development of a pattern of striking regional inequalities during the Spanish industrialization process and, secondly, by current evidence of an increase in these inequalities following Spain's entry in the EU, in 1986. We employ an economic geography model comprising three regions: two domestic and one external. Labor mobility is permitted between the domestic regions but not with the external region. The model shows that trade liberalization increases regional inequalities.

Suggested Citation

  • Elisenda Paluzie, 2001. "articles: Trade policy and regional inequalities," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(1), pages 67-85.
    • Handle: RePEc:spr:presci:v:80:y:2001:i:1:p:67-85
    Note: Received: 4 March 1999
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    More about this item

    Keywords

    Regional inequalities; trade liberalization; industrial location;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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