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Models of Economic Integration and Localized Growth

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  • Bertola, Giuseppe

Abstract

Economic integration and free factor mobility may be expected to enhance the growth performance of a united Europe. Simple models of integration among independent, endogenously-growing economic entities suggest that factor mobility may deepen rather than reduce regional differences in economic performance, however. This paper studies interactions between static geographical externalities and dynamic investment decisions, and it finds that economic integration need not result in more efficient factor allocations or faster growth.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 651.

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Date of creation: Mar 1992
Date of revision:
Handle: RePEc:cpr:ceprdp:651

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Related research

Keywords: European Community; Externalities; Factor Mobility; Growth;

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Cited by:
  1. Giannetti, M., 2000. "On the Mechanics of Migration Decisions: Skill Complementarities and Endogenous Price Differentials," Papers 366, Banca Italia - Servizio di Studi.
  2. Ron Martin & Peter Tyler, 2000. "Regional Employment Evolutions in the European Union: A Preliminary Analysis," Regional Studies, Taylor & Francis Journals, vol. 34(7), pages 601-616.
  3. Larramona, Gemma & Sanso, Marcos, 2006. "Migration dynamics, growth and convergence," Journal of Economic Dynamics and Control, Elsevier, vol. 30(11), pages 2261-2279, November.
  4. Pozzolo, Alberto Franco, 2004. "Endogenous Growth in Open Economies - A Survey of Major Results," Economics & Statistics Discussion Papers esdp04020, University of Molise, Dept. EGSeI.
  5. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  6. Basevi, Giorgio & Ottaviano, Gianmarco Ireo Paolo, 2001. "The District and the Global Economy: Exporting versus Foreign Location," CEPR Discussion Papers 2976, C.E.P.R. Discussion Papers.
  7. Geremia Palomba, 2008. "Capital income taxation and economic growth in open economies," International Tax and Public Finance, Springer, vol. 15(6), pages 668-692, December.
  8. Gianmarco Ottaviano & Philippe Martin, 1995. "The Geography of Multi-Speed Europe," Sciences Po publications DP1292, Sciences Po.
  9. Corrado, L. & Martin, R. & Weeks, M., 2004. "Identifying and Interpreting Convergence Clusters Across Europe," Cambridge Working Papers in Economics 0414, Faculty of Economics, University of Cambridge.
  10. Faini, Riccardo, 1996. "Increasing returns, migrations and convergence," Journal of Development Economics, Elsevier, vol. 49(1), pages 121-136, April.
  11. Mª Luz García de la Vega & José A. Herce, . "Integration and Growth in the EU. The Role of Trade," Working Papers 2000-20, FEDEA.
  12. Asli Demirg��-Kunt & Ross Levine, 2009. "Finance and Inequality: Theory and Evidence," Annual Review of Financial Economics, Annual Reviews, vol. 1(1), pages 287-318, November.

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