Matthieu Crozet () (TEAM - Théories et Applications en Microéconomie et Macroéconomie - CNRS : UMR8059 - Université Panthéon-Sorbonne - Paris I) Pamina Koenig () (TEAM - Théories et Applications en Microéconomie et Macroéconomie - CNRS : UMR8059 - Université Panthéon-Sorbonne - Paris I, CREST - Centre de Recherche en Économie et Statistique - INSEE - École Nationale de la Statistique et de l'Administration Économique)
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This paper focuses on the relation between trade openness and the location of economicactivity in a country. The problematic lies in the context of the EU enlargement process and ofits impact on the location of economic activity inside each of the accessing countries. We develop a new economic geography model based on the original Krugman (1991) model, and show that trade liberalization will foster agglomeration of economic activity in the location that has the lowest-cost access to foreign markets. Our results thus differ from Krugman and Livas's (1996) conclusions. We expect the CEECs' economies to shift economic activity towards EU markets. We provide empirical evidence of this result focusing on the post-1991 Romanian urban system.
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Length: Date of creation: Jun 2004 Date of revision: Publication status: Published, Journal of Comparative Economics, 2004, 32, 2, 265-279 Handle: RePEc:hal:cesptp:halshs-00096821_v1
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00096821/en/ Contact details of provider: Web page: http://hal.archives-ouvertes.fr/
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