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Regional Convergence and International Integration

  • Monfort, Philippe
  • Nicolini, Rosella

In this paper, we analyse the geographic concentration of economic activities within the framework of a two countries and four regions model. Trade both between regions and countries entails transport costs which are differentiated according to the interregional or international nature of the flows. Allowing for regional migration of the population, the model configures the equilibra of this systems as key parameters change. The results obtained suggest that both types of transaction costs affect the incentive for firms to cluster geographically. Consequently, processes of integration between nations such as the one taking place through the constitution of the European Union is identified as a factor possibly favoring the emergence of regional economic agglomeration.

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File URL: http://www.sciencedirect.com/science/article/pii/S0094-1190(99)92167-8
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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 48 (2000)
Issue (Month): 2 (September)
Pages: 286-306

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Handle: RePEc:eee:juecon:v:48:y:2000:i:2:p:286-306
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. Kiminori Matsuyama, 1996. "Why Are There Rich and Poor Countries? Symmetry-Breaking in the World Economy," NBER Working Papers 5697, National Bureau of Economic Research, Inc.
  2. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
  3. repec:hhs:iuiwop:430 is not listed on IDEAS
  4. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
  5. Fujita, Masahisa & Thisse, Jacques-Francois, 1996. "Economics of Agglomeration," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 339-378, December.
  6. Krugman, Paul R, 1993. "On the Relationship between Trade Theory and Location Theory," Review of International Economics, Wiley Blackwell, vol. 1(2), pages 110-22, June.
  7. Krugman, Paul & Venables, Anthony J, 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
  8. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  9. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  10. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
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