articles: Trade policy and regional inequalities

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articles: Trade policy and regional inequalities

Author Info

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

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Elisenda Paluzie

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.

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Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 80 (2001)
Issue (Month): 1 ()
Pages: 67-85
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Handle: RePEc:spr:presci:v:80:y:2001:i:1:p:67-85

Note: Received: 4 March 1999
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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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