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Regional Integration, Trade, and Migration: Are Demand Linkages Relevant in Europe?

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Author Info
Rodney D. Ludema (Georgetown University)
Ian Wooton (University of Glasgow)

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Abstract

We examine the consequences of increased economic integration between nations within a region. We adopt Krugman’s economic-geography model in which demand linkages can generate agglomeration of manufacturing activity. Manufacturing labour is assumed to be imperfectly mobile between countries. This constrains the forces of agglomeration within the region and suggests that the model may be applicable to Europe. We show that trade liberalisation may lead initially to partial agglomeration, then a re-industrialisation of the periphery. This argues in favour of a sequential approach to integration, with trade barriers being eliminated prior to a reduction in impediments to factor mobility.

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Publisher Info
Paper provided by EconWPA in its series International Trade with number 9802001.

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Length: 25 pages
Date of creation: 02 Feb 1998
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Handle: RePEc:wpa:wuwpit:9802001

Note: Type of Document - MS Word; prepared on IBM PC; to print on HP; pages: 25 ; figures: included
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Related research
Keywords: economic integration; economic geography; factor mobility; international trade;

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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
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Ludema, Rodney D. & Wooton, Ian, 2000. "Economic geography and the fiscal effects of regional integration," Journal of International Economics, Elsevier, vol. 52(2), pages 331-357, December. [Downloadable!] (restricted)
    Other versions:
  2. Krugman, Paul R & Venables, Anthony J, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 857-80, November. [Downloadable!] (restricted)
    Other versions:
  3. Faini, Riccardo, 1996. "Increasing returns, migrations and convergence," Journal of Development Economics, Elsevier, vol. 49(1), pages 121-136, April. [Downloadable!] (restricted)
  4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Rodney D. Ludema & Ian Wooton, 1998. "Economic Geography and the Fiscal Effects of Regional Integration," Working Papers 9809, Department of Economics, University of Glasgow. [Downloadable!]
    Other versions:
  3. Thomas Osang, 2006. "External and internal determinants of development," Proceedings, Federal Reserve Bank of Dallas, pages 35-59. [Downloadable!]
  4. Hemanta Shrestha & Dennis Heffley, 2003. "Regional Integration and Industrial Location in a Landlocked Spatial Economy," Working papers 2003-07, University of Connecticut, Department of Economics. [Downloadable!]
  5. Rainald Borck & Michael Pflüger, 2004. "Agglomeration and Tax Competition," Discussion Papers of DIW Berlin 408, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  6. Nicola D. Coniglio, 2002. "Regional Intergration and Migration: An Economic Geography Model with Hetergenous Labour Force," Working Papers 2003_1, Department of Economics, University of Glasgow. [Downloadable!]
  7. Niebuhr, Annekatrin & Stiller, Silvia, 2002. "Integration effects in border regions - a survey of economic theory and empirical studies," ERSA conference papers ersa02p066, European Regional Science Association. [Downloadable!]
  8. Ansgar Belke & Jens Heine, 2007. "On the endogeneity of an exogenous OCA-criterion: specialisation and the correlation of regional business cycles in Europe," Empirica, Springer, vol. 34(1), pages 15-44, March. [Downloadable!] (restricted)
  9. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," Department of Economics Discussion Papers 0103, Department of Economics, University of Surrey. [Downloadable!]
  10. de Melo, Jaime & Grether, Jean-Marie & Müller, Tobias, 2001. "The Political Economy of International Migration in a Ricardo-Viner Model," CEPR Discussion Papers 2714, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  11. Fabrice Darrigues & Jean-Marc Montaud, 2001. "Intégration économique et agglomération des activités industrielles dans le Mercosur, les enseignements d'un modèle d'économie géographique," Documents de travail 54, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  12. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement: Paper Presented at the 41st Economic Policy Panel in Luxembourg, 15/16 April 2005," Discussion Papers of DIW Berlin 481, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  13. Niebuhr, Annekatrin & Stiller, Silvia, 2002. "Integration Effects in Border Regions - A Survey of Economic Theory and Empirical Studies," Discussion Paper Series 26340, Hamburg Institute of International Economics. [Downloadable!]
  14. Stephan Russek, 2008. ""Taste heterogeneity, labor mobility and economic geography" - A critical reconsideration and correction," Economics Bulletin, Economics Bulletin, vol. 18(1), pages 1-13. [Downloadable!]
  15. Henk J.E.M. Brand, 2004. "The Economic Geography Effects of Trade Liberalisation on the National Regions of Spain," Working Papers 2004_8, Department of Economics, University of Glasgow. [Downloadable!]
  16. Andreas Haufler & Ian Wooton, . "Country Size and Tax Competition for Foreign Direct Investment," Working Papers 9702, Department of Economics, University of Glasgow. [Downloadable!]
    Other versions:
  17. Forslid, Rikard & Wooton, Ian, 1999. "Comparative Advantage and the Location of Production," CEPR Discussion Papers 2118, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  18. Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute for the Study of Labor (IZA). [Downloadable!]
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