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International Integration And Regional Inequalities: How Important Is National Infrastructure?

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  • KRISTIAN BEHRENS

Abstract

We investigate how international trade and trade policy possibly affect the regional distribution of economic activities within a country involved in a process of economic integration. Our analysis reveals that the impact of decreasing international trade costs on the spatial distribution of economic activities strongly depends on the structure of trade flows and the value of transport costs internal to the country. Whereas trade liberalization in developing countries with poor infrastructure and mostly autarkic regions may exacerbate spatial inequalities, countries with better infrastructure and larger volumes ofinterregional trade may experience a more balanced geographical development.
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Suggested Citation

  • Kristian Behrens, 2011. "International Integration And Regional Inequalities: How Important Is National Infrastructure?," Manchester School, University of Manchester, vol. 79(5), pages 952-971, September.
  • Handle: RePEc:bla:manchs:v:79:y:2011:i:5:p:952-971
    DOI: j.1467-9957.2009.02151.x
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    Citations

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    Cited by:

    1. Mauricio Mesquita Moreira, 2006. "IIRSA Economic Fundamentals," IDB Publications (Working Papers) 9201, Inter-American Development Bank.
    2. Jian Wang & Xiao-Ping Zheng, 2013. "Industrial Agglomeration: Asymmetry Of Regions And Trade Costs," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(2), pages 61-78, July.
    3. Commendatore, Pasquale & Kubin, Ingrid & Petraglia, Carmelo & Sushko, Iryna, 2014. "Regional integration, international liberalisation and the dynamics of industrial agglomeration," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 265-287.
    4. Ertan Oktay & Giray Gozgor, 2013. "Trade And Regional Development In A Developing Country: The Case Of Turkey," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 201-212, November.
    5. Olga Alonso-Villar, 2006. "A Reflection On The Effects Of Transport Costs Within The New Economic Geography," Working Papers 57, ECINEQ, Society for the Study of Economic Inequality.
    6. Jorge Barrientos Marín & Jorge Lotero Contreras, 2011. "Evolución y determinantes de las exportaciones industriales regionales: evidencia empírica para Colombia (1977-2002)," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, June.
    7. Christian Volpe Martincus, 2010. "Spatial Effects Of Trade Policy: Evidence From Brazil," Journal of Regional Science, Wiley Blackwell, vol. 50(2), pages 541-569.
    8. Xi Yang & Nobuaki Hamaguchi, 2013. "Trade infrastructure and firm location under Cournot competition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 153-167, February.
    9. Sanguinetti, Pablo & Volpe Martincus, Christian, 2009. "Tariffs and manufacturing location in Argentina," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 155-167, March.
    10. Pasquale Commendatore & Ingrid Kubin & Pascal Mossay & Iryna Sushko, 2015. "Dynamic agglomeration patterns in a 2-country NEG model with 4 regions," Gecomplexity Discussion Paper Series 10, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Feb 2015.
    11. repec:nea:journl:y:2017:i:34:p:94-122 is not listed on IDEAS
    12. Candau Fabien, 2005. "Lumpy World and Race to the Bottom," International Trade 0508008, EconWPA, revised 20 Feb 2006.

    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • 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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