IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

The spatial effects of trade openness: a survey

  • Marius Brülhart

    ()

This paper surveys the literature on the implications of trade liberalisationfor intra-national economic geographies. Three results stand out. First, neitherurban systems models nor new economic geography models imply a robust predictionfor the impact of trade openness on spatial concentration. Whether tradepromotes concentration or dispersion depends on subtle modelling choices amongwhich it is impossible to adjudicate a priori. Second, empirical evidence mirrors thetheoretical indeterminacy: a majority of cross-country studies find no significanteffect of openness on urban concentration or regional inequality. Third, the availablemodels predict that, other things equal, regions with inherently less costlyaccess to foreign markets, such as border or port regions, stand to reap the largestgains from trade liberalisation. This prediction is confirmed by the available evidence.Whether trade liberalisation raises or lowers regional inequality thereforedepends on each country’s specific geography. 

(This abstract was borrowed from another version of this item.)

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hdl.handle.net/10.1007/s10290-010-0083-5
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer & Institut für Weltwirtschaft (Kiel Institute for the World Economy) in its journal Review of World Economics.

Volume (Year): 147 (2011)
Issue (Month): 1 (April)
Pages: 59-83

as
in new window

Handle: RePEc:spr:weltar:v:147:y:2011:i:1:p:59-83
DOI: 10.1007/s10290-010-0083-5
Contact details of provider: Web page: http://www.springer.com

Postal:

Kiellinie 66, D-24105 Kiel

Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: https://www.ifw-kiel.de/
Email:


More information through EDIRC

Order Information: Web: http://www.springer.com/economics/international+economics/journal/10290/PS2

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.:

as in new window
  1. Arne Melchior, 2009. "East-West Integration and the Economic Geography of Europe," CASE Network Studies and Analyses 0379, CASE-Center for Social and Economic Research.
  2. Ottaviano, Gianmarco & Thisse, Jacques-François, 1998. "Agglomeration and Trade Revisited," CEPR Discussion Papers 1903, C.E.P.R. Discussion Papers.
  3. Chiquiar, Daniel, 2005. "Why Mexico's regional income convergence broke down," Journal of Development Economics, Elsevier, vol. 77(1), pages 257-275, June.
  4. Brülhart, Marius & Carrère, Céline & Trionfetti, Federico, 2011. "How Wages and Employment Adjust to Trade Liberalization: Quasi-Experimental Evidence from Austria," CEPR Discussion Papers 8430, C.E.P.R. Discussion Papers.
  5. J. Vernon Henderson, 1996. "Ways to Think about Urban Concentration: Neoclassical Urban Systems versus the New Economic Geography," International Regional Science Review, SAGE Publishing, vol. 19(1-2), pages 31-36, April.
  6. Nitsch, Volker, 2006. "Trade Openness and Urban Concentration: New Evidence," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 340-362.
  7. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September.
  8. Crozet, Matthieu & Koenig Soubeyran, Pamina, 2004. "EU enlargement and the internal geography of countries," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 265-279, June.
  9. repec:hal:journl:halshs-00096821 is not listed on IDEAS
  10. Kashif S. Mansori, 2003. "The Geographic Effects of Trade Liberalization with Increasing Returns in Transportation," Journal of Regional Science, Wiley Blackwell, vol. 43(2), pages 249-268.
  11. Henderson, J. Vernon, 1987. "General equilibrium modeling of systems of cities," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 23, pages 927-956 Elsevier.
  12. BEHRENS, Kristian & GAIGNE, Carl & OTTAVIANO, Gianmarco I.P. & THISSE, Jacques-François, . "How density economies in international transportation link the internal geography of trading partners," CORE Discussion Papers RP 1870, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  13. Chiquiar, Daniel, 2008. "Globalization, regional wage differentials and the Stolper-Samuelson Theorem: Evidence from Mexico," Journal of International Economics, Elsevier, vol. 74(1), pages 70-93, January.
  14. Marius Brülhart & Pamina Koenig, 2005. "New Economic Geography meets Comecon: Regional Wages and Industry Location in Central Europe," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.01, Université de Lausanne, Faculté des HEC, DEEP.
  15. Olga Alonso-Villar, 2000. "Large metropolises in the Third World: an explanation," Working Papers 0004, Universidade de Vigo, Departamento de Economía Aplicada.
  16. Marius BRÜLHART & Rolf TRAEGER, 2003. "An Account of Geographic Concentration Patterns in Europe," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 03.06, Université de Lausanne, Faculté des HEC, DEEP.
  17. Henderson, Vernon, 2003. "The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
  18. repec:hal:journl:halshs-00096285 is not listed on IDEAS
  19. Rosen, Kenneth T. & Resnick, Mitchel, 1980. "The size distribution of cities: An examination of the Pareto law and primacy," Journal of Urban Economics, Elsevier, vol. 8(2), pages 165-186, September.
  20. Gordon H. Hanson, 1996. "U.S.-Mexico Integration and Regional Economies: Evidence from Border- City Pairs," NBER Working Papers 5425, National Bureau of Economic Research, Inc.
  21. Rodriguez-Pose, Andres & Sanchez-Reaza, Javier, 2003. "Economic Polarization Through Trade: Trade Liberalization and Regional Growth in Mexico," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  22. Stephen J. Redding & Daniel M. Sturm, 2008. "The Costs of Remoteness: Evidence from German Division and Reunification," American Economic Review, American Economic Association, vol. 98(5), pages 1766-97, December.
  23. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert Nicoud, 2003. "Economic Geography and Public Policy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00179815, HAL.
  24. Raul Livas Elizondo & Paul Krugman, 1992. "Trade Policy and the Third World Metropolis," NBER Working Papers 4238, National Bureau of Economic Research, Inc.
  25. Marius BRÜLHART & Matthieu CROZET & Pamina KOENIG, 2004. "Enlargement and the EU Periphery: The Impact of Changing Market Potential," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 04.02, Université de Lausanne, Faculté des HEC, DEEP.
  26. Gilles Duranton, 2008. "Viewpoint: From cities to productivity and growth in developing countries," Canadian Journal of Economics, Canadian Economics Association, vol. 41(3), pages 689-736, August.
  27. 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.
  28. BEHRENS, Kristian & GAIGNE, Carl & OTTAVIANO, Gianmarco I.P. & THISSE, Jacques-François, . "Countries, regions and trade: on the welfare impacts of economic integration," CORE Discussion Papers RP 1936, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  29. Kanbur, Ravi & Zhang, Xiaobo, 2004. "Fifty Years of Regional Inequality in China: A Journey through Central Planning, Reform, and Openness," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  30. Marcela González Rivas, 2007. "The effects of trade openness on regional inequality in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(3), pages 545-561, September.
  31. Christian Volpe Martincus, 2010. "Spatial Effects Of Trade Policy: Evidence From Brazil," Journal of Regional Science, Wiley Blackwell, vol. 50(2), pages 541-569.
  32. Ernesto M. Pernia & Pilipinas F. Quising, 2003. "Trade openness and regional development in a developing country," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(3), pages 391-406, 08.
  33. Gilles Duranton, 2007. "From cities to productivity and growth in developing countries," Working Papers tecipa-306, University of Toronto, Department of Economics.
  34. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  35. Peter Egger & Peter Huber & Michael Pfaffermayr, 2005. "A note on export openness and regional wage disparity in Central and Eastern Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(1), pages 63-71, 03.
  36. J. Vernon Henderson, 2000. "The Effects of Urban Concentration on Economic Growth," NBER Working Papers 7503, National Bureau of Economic Research, Inc.
  37. Hanson, Gordon H., 1998. "Regional adjustment to trade liberalization," Regional Science and Urban Economics, Elsevier, vol. 28(4), pages 419-444, July.
  38. Rauch, James E., 1989. "Increasing returns to scale and the pattern of trade," Journal of International Economics, Elsevier, vol. 26(3-4), pages 359-369, May.
  39. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  40. BERTINELLI, Luisito & BLACK, Duncan, . "Urbanization and growth," CORE Discussion Papers RP 1724, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  41. Paluzie i Hernandez, Elisenda, 1999. "Trade policy and regional inequalities," ERSA conference papers ersa99pa231, European Regional Science Association.
  42. Brülhart, Marius & Sbergami, Federica, 2009. "Agglomeration and growth: Cross-country evidence," Journal of Urban Economics, Elsevier, vol. 65(1), pages 48-63, January.
  43. Monfort, Philippe & van Ypersele, Tanguy, 2003. "Integration, Regional Agglomeration and International Trade," CEPR Discussion Papers 3752, C.E.P.R. Discussion Papers.
  44. Moomaw, Ronald L. & Alwosabi, Mohammed A., 2003. "An empirical analysis of competing explanations of urban primacy: Evidence from Asia and the Americas," ZEI Working Papers B 19-2003, University of Bonn, ZEI - Center for European Integration Studies.
  45. Alberto F. Ades & Edward L. Glaeser, 1995. "Trade and Circuses: Explaining Urban Giants," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 195-227.
  46. Takahashi, Takaaki, 2003. "International trade and inefficiency in the location of production," Journal of the Japanese and International Economies, Elsevier, vol. 17(2), pages 134-152, June.
  47. Moomaw, Ronald L. & Shatter, Ali M., 1996. "Urbanization and Economic Development: A Bias toward Large Cities?," Journal of Urban Economics, Elsevier, vol. 40(1), pages 13-37, July.
  48. Tony Venables, 2003. "Spatial disparities in developing countries: cities, regions and international trade," LSE Research Online Documents on Economics 2038, London School of Economics and Political Science, LSE Library.
  49. Monfort, Philippe & Nicolini, Rosella, 2000. "Regional Convergence and International Integration," Journal of Urban Economics, Elsevier, vol. 48(2), pages 286-306, September.
  50. Pfluger, Michael, 2004. "A simple, analytically solvable, Chamberlinian agglomeration model," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 565-573, September.
  51. Henderson, J Vernon & Kuncoro, Ari, 1996. "Industrial Centralization in Indonesia," World Bank Economic Review, World Bank Group, vol. 10(3), pages 513-40, September.
  52. Rauch, James E, 1991. "Comparative Advantage, Geographic Advantage and the Volume of Trade," Economic Journal, Royal Economic Society, vol. 101(408), pages 1230-44, September.
  53. Haaparanta, Pertti, 1998. "Regional concentration, trade, and welfare," Regional Science and Urban Economics, Elsevier, vol. 28(4), pages 445-463, July.
  54. Benjamin Faber, 2007. "Towards the Spatial Patterns of Sectoral Adjustments to Trade Liberalisation: The Case of NAFTA in Mexico," Growth and Change, Wiley Blackwell, vol. 38(4), pages 567-594.
  55. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
  56. Henderson, J. Vernon, 1982. "Systems of cities in closed and open economies," Regional Science and Urban Economics, Elsevier, vol. 12(3), pages 325-350, August.
  57. Villar, Olga Alonso, 1999. "Spatial distribution of production and international trade: a note," Regional Science and Urban Economics, Elsevier, vol. 29(3), pages 371-380, May.
  58. Rodney Ramcharan, 2009. "Why an economic core: domestic transport costs," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 559-581, July.
  59. Marius Brülhart, 2001. "Evolving geographical concentration of European manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(2), pages 215-243, June.
  60. Hanson, Gordon H, 1997. "Increasing Returns, Trade and the Regional Structure of Wages," Economic Journal, Royal Economic Society, vol. 107(440), pages 113-33, January.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:spr:weltar:v:147:y:2011:i:1:p:59-83. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Rebekah McClure)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.