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Trade Openness and City Interaction

In: THE REGION AND TRADE New Analytical Directions

Author

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  • Mauricio Ramírez Grajeda
  • Ian M. Sheldon

Abstract

The New Economic Geography framework supports the idea that international economic integration plays an important role in second nature geography such as the size of cities. By using Fujita et al. (1999) as a theoretical motivation, information on the most important cities of 84 countries from 1970 to 2000, and spatial econometric of secondary cities increase, as a result of more exposure to external trade. Similar outcomes are observed for cities with a population over a million. However, cities that represent a large fraction of the urban population grow independently of their position in the urban ranking. Such results are in general consistent for different definitions of trade openness. Furthermore, an implication of international trade openness is higher levels of internal trade among secondary cities.

Suggested Citation

  • Mauricio Ramírez Grajeda & Ian M. Sheldon, 2015. "Trade Openness and City Interaction," World Scientific Book Chapters, in: Amitrajeet A Batabyal & Peter Nijkamp (ed.), THE REGION AND TRADE New Analytical Directions, chapter 10, pages 267-318, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814520164_0010
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    Cited by:

    1. Yuan Zhang & Guanghua Wan, 2017. "Exploring the Trade–Urbanization Nexus in Developing Economies: Evidence and Implications," ADBI Working Papers 636, Asian Development Bank Institute.
    2. Carolina Guevara, 2015. "The effect of trade on agglomeration within regions," Working Papers halshs-01233389, HAL.
    3. Ramírez Grajeda, Mauricio & de León Arias, Adrián, 2009. "Spatial implications of international trade under the new economic geography approach," MPRA Paper 18076, University Library of Munich, Germany.
    4. Grace Carolina GUEVARA-ROSERO, 2017. "The Effect of Trade on Agglomeration within Regions," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 75-97, March.

    More about this item

    Keywords

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    JEL classification:

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