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Integration, Regional Agglomeration and International Trade

Author

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  • Monfort, Philippe
  • van Ypersele, Tanguy

Abstract

In this Paper, we develop a two country four region model allowing for a core periphery pattern inside countries. We then examine how both the integration and the agglomeration process inside a given country affects the pattern of specialization and international trade. We also analyse how agglomeration process interact from one country to the other and in particular how agglomeration forces in one country is affected by the spatial distribution of activity in the partner country. The main results of the analysis are the following: (i) agglomeration proves to be a source of comparative advantages in the industries featuring economies of scale on condition that this agglomeration process is driven by market forces; (ii) both integration and agglomeration in one country reduces the likelihood to observe agglomeration in the partner country.

Suggested Citation

  • Monfort, Philippe & van Ypersele, Tanguy, 2003. "Integration, Regional Agglomeration and International Trade," CEPR Discussion Papers 3752, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:3752
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    Citations

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    Cited by:

    1. Kristian Behrens, 2003. "International trade and internal geography revisited," Working Papers hal-01526511, HAL.
    2. Lefteris Topaloglou & George Petrakos, 2006. "The New Economic Geography of the Northern Greek Border Regions," ERSA conference papers ersa06p456, European Regional Science Association.
    3. George Petrakos & Lefteris Topaloglou, 2005. "Tracing the new economic geography of borders in Europe," ERSA conference papers ersa05p424, European Regional Science Association.
    4. Kristian Behrens, 2011. "International Integration And Regional Inequalities: How Important Is National Infrastructure?," Manchester School, University of Manchester, vol. 79(5), pages 952-971, September.
    5. Christian Volpe Martincus, 2010. "Spatial Effects Of Trade Policy: Evidence From Brazil," Journal of Regional Science, Wiley Blackwell, vol. 50(2), pages 541-569.
    6. Takanori Ago & Ikumo Isono & Takatoshi Tabuchi, 2006. "Locational disadvantage of the hub," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 819-848, December.
    7. 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.
    8. Georg Hirte & Christian Leßmann, 2014. "Trade, Integration, and Interregional Inequality," CESifo Working Paper Series 4799, CESifo Group Munich.
    9. Ezcurra, Roberto & Rodríguez-Pose, Andrés, 2013. "Does Economic Globalization affect Regional Inequality? A Cross-country Analysis," World Development, Elsevier, vol. 52(C), pages 92-103.
    10. Dimitris Kallioras & George Petrakos & Maria Tsiapa & Lefteris Topaloglou, 2011. "The Determinants of Growth in EU Border Regions," ERSA conference papers ersa10p702, European Regional Science Association.
    11. Muqun Li & Ian Coxhead, 2011. "Trade and Inequality with Limited Labor Mobility: Theory and Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 48-65, February.
    12. 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, vol. 13(2), pages 99-116.
    13. Marius Brülhart, 2011. "The spatial effects of trade openness: a survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(1), pages 59-83, April.
    14. Souleymane COULIBALY, 2006. "Persistent Uneven Spread of Economic Activities within Developing RIAs," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 06.01, Université de Lausanne, Faculté des HEC, DEEP.
    15. Olga Alonso-Villar, 2005. "The effects of transport costs within the new economic geography," Working Papers 0502, Universidade de Vigo, Departamento de Economía Aplicada.
    16. Petrakos, George & Dimitris, Kallioras & Ageliki, Anagnostou, 2007. "A Generalized Model of Regional Economic Growth in the European Union," Papers DYNREG12, Economic and Social Research Institute (ESRI).
    17. 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.
    18. Balogun, Emmanuel Dele, 2007. "Effects of exchange rate policy on bilateral export trade of WAMZ countries," MPRA Paper 6234, University Library of Munich, Germany.

    More about this item

    Keywords

    integration; international trade; regional Agglomeration;

    JEL classification:

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

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