IDEAS home Printed from
   My bibliography  Save this article

The Regional Impact of Trade Liberalization in a Model with Congestion Costs a la Helpman


  • Pedro Moncarz
  • Michael Bleaney


Moncarz P. E. and Bleaney M. The regional impact of trade liberalization in a model with congestion costs a la Helpman, Regional Studies. The effects of the liberalization of international trade are analysed in a New Economic Geography model of a country with an asymmetrical distribution of housing between regions. Labour is mobile between regions, but not between countries. Trade liberalization tends to reduce inequalities in the distribution of the population between the two regions, although the population is more unequally distributed than housing. Results are similar when there is a bias in preferences towards home-produced varieties of manufactures. If consumers care relatively little about housing and transport costs are high enough, an agglomerated equilibrium becomes stable. [image omitted] Moncarz P. E. et Bleaney M. Une analyse de l'impact regional de la liberalisation des echanges a partir d'un modele comportant des couts d'encombrement a la Helpman, Regional Studies. A partir d'un modele du type Nouvelle Geographie Economique d'un pays a une distribution interregionale du logement asymetrique, on analyse l'impact de la liberalisation des echanges. La main-d'oeuvre est mobile sur le plan interregional mais ne l'est pas au niveau international. La liberalisation des echanges a tendance a reduire les inegalites de la distribution de la population entre deux regions, bien que la population soit distribuee de maniere plus inegale que ne le soit le logement. Les resultats s'averent similaires quand il y a une tendance en faveur des fabrications locales. Si les consommateurs s'interessent relativement peu au logement et que les frais de transport soient suffisamment eleves, un equilibre agglomere devient stable. Liberalisation des echanges Agglomeration Frais de logement Moncarz P. E. und Bleaney M. Die regionale Auswirkung einer Handelsliberalisierung in einem Modell mit Verkehrsmittelnutzungskosten a la Helpman, Regional Studies. Anhand eines Modells der neuen Wirtschaftsgeografie analysieren wir in einem Land mit innerhalb der Regionen asymmetrisch verteiltem Wohnungsangebot die Auswirkungen der Liberalisierung des internationalen Handels. Arbeitskrafte sind auf interregionaler, nicht jedoch auf internationaler Ebene mobil. Eine Liberalisierung des Handels baut tendenziell Ungleichgewichte bei der Verteilung der Bevolkerung auf zwei Regionen ab, wobei allerdings die Bevolkerung ungleichmassiger verteilt ist als das Wohnungsangebot. Die Ergebnisse fallen ahnlich aus, wenn die Praferenz einseitig zugunsten einheimisch produzierter Arten von Erzeugnissen tendiert. Wenn die Verbraucher auf das Wohnungsangebot relativ wenig Wert legen und die Verkehrsmittelnutzungskosten hoch genug liegen, erhalt ein agglomeriertes Gleichgewicht Stabilitat. Handelsliberalisierung Agglomeration Wohnungskosten Moncarz P. E. y Bleaney M. Impactos regionales de la liberalizacion comercial en un modelo con costos de congestion a la Helpman, Regional Studies. Los efectos de la liberalizacion comercial son analizados usando un modelo de la Nueva Geografia Economica, suponiendo una economia con una distribucion asimetrica entre regiones del stock de vivienda. El factor trabajo es movil entre regiones pero no entre paises. La liberalizacion comercial tiende a reducir la desigualdad en la distribucion de la poblacion entre las regiones, aunque esta se distribuye de forma mas desigual que el stock de vivienda. Resultados similares emergen cuando se permite la presencia de un sesgo en las preferencias por los bienes producidos domesticamente. Si los consumidores no se preocupan lo suficiente por el consumo de servicios de vivienda, y los costos de transporte son elevados, un equilibrio con la poblacion concentrandose en una sola region se vuelve estable. Liberalizacion comercial Aglomeracion y costos de vivienda

Suggested Citation

  • Pedro Moncarz & Michael Bleaney, 2010. "The Regional Impact of Trade Liberalization in a Model with Congestion Costs a la Helpman," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 935-947.
  • Handle: RePEc:taf:regstd:v:44:y:2010:i:8:p:935-947
    DOI: 10.1080/00343400903401576

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Richard E. Baldwin & Rikard Forslid, 2010. "Trade Liberalization with Heterogeneous Firms," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 161-176, May.
    2. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
    3. Behrens, Kristian & Gaigné, Carl & Ottaviano, Gianmarco & Thisse, Jacques-François, 2003. "Inter-regional and International Trade: Seventy Years After Ohlin," CEPR Discussion Papers 4065, C.E.P.R. Discussion Papers.
    4. Russell Hillberry & David Hummels, 2002. "Explaining Home Bias in Consumption: The Role of Intermediate Input Trade," NBER Working Papers 9020, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:44:y:2010:i:8:p:935-947. 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: (Chris Longhurst). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.