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articles: Trade policy and regional inequalities

Author

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  • Elisenda Paluzie

    () (University of Barcelona, Department of Economic Theory, Av. Diagonal 690, 08034 Barcelona, Catalonia, Spain)

Abstract

This article aims to analyze the effects of trade policies on the pattern of regional inequalities within a country. It is inspired, firstly, by the debate concerning the role of protectionist policies in the development of a pattern of striking regional inequalities during the Spanish industrialization process and, secondly, by current evidence of an increase in these inequalities following Spain's entry in the EU, in 1986. We employ an economic geography model comprising three regions: two domestic and one external. Labor mobility is permitted between the domestic regions but not with the external region. The model shows that trade liberalization increases regional inequalities.

Suggested Citation

  • Elisenda Paluzie, 2001. "articles: Trade policy and regional inequalities," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(1), pages 67-85.
  • Handle: RePEc:spr:presci:v:80:y:2001:i:1:p:67-85 Note: Received: 4 March 1999
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    References listed on IDEAS

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    Cited by:

    1. Andrés Rodríguez-Pose & Roberto Ezcurra, 2010. "Does decentralization matter for regional disparities? A cross-country analysis," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 619-644, September.
    2. Zeng, Dao-Zhi & Zhao, Laixun, 2010. "Globalization, interregional and international inequalities," Journal of Urban Economics, Elsevier, vol. 67(3), pages 352-361, May.
    3. Atsumi, Toshihiro, 2010. "Silk, regional rivalry, and the impact of the port openings in nineteenth century Japan," Journal of the Japanese and International Economies, Elsevier, vol. 24(4), pages 519-539, December.
    4. 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, pages 265-287.
    5. repec:taf:regstd:v:51:y:2017:i:8:p:1246-1258 is not listed on IDEAS
    6. Kristian Behrens & Frédéric Robert-Nicoud, 2009. "Krugman's "Papers in Regional Science": The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well-deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    7. Eleonora CUTRINI, 2005. "Trends in European Manufacturing Location: Country versus Region," Working Papers 247, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    8. Kandogan, Yener, 2014. "The effect of foreign trade and investment liberalization on spatial concentration of economic activity," International Business Review, Elsevier, vol. 23(3), pages 648-659.
    9. 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.
    10. Pasquale Commendatore & Ingrid Kubin & Carmelo Petraglia & Iryna Sushko, 2012. "Economic integration and agglomeration in a customs union in the presence of an outside region," Department of Economics Working Papers wuwp146, Vienna University of Economics and Business, Department of Economics.
    11. Kenji Nozaki, 2014. "Industrial Dispersion in Thailand with Changes in Trade Policies," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(7), pages 806-819, July.
    12. 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.
    13. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
    14. repec:ebl:ecbull:eb-17-00078 is not listed on IDEAS
    15. Francesco Quatraro & Stefano Usai, 2017. "Are knowledge flows all alike? Evidence from European regions," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1246-1258, August.
    16. repec:wsi:medjxx:v:04:y:2012:i:02:n:s1793812012500101 is not listed on IDEAS
    17. CRESPO, Nuno & FONTOURA, Maria Paula, 2013. "Regional Integration And Internal Economic Geography - An Empirical Evaluation With Portuguese Data," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, pages 99-116.
    18. Saikia, Dilip, 2011. "Does Economic Integration Affect Spatial Concentration of Industries? Theory and a Case Study for India," MPRA Paper 64199, University Library of Munich, Germany.
    19. repec:spr:anresc:v:59:y:2017:i:2:d:10.1007_s00168-017-0836-3 is not listed on IDEAS
    20. repec:dau:papers:123456789/4295 is not listed on IDEAS
    21. Nuno Crespo & Maria Paula Fontoura, 2008. "Regional Integration and International Economic Geography in the Portuguese Case - an update," Working Papers Department of Economics 2008/51, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    Keywords

    Regional inequalities; trade liberalization; industrial location;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • 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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