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Local Agglomerations and Trade: an Empirical Investigation

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  • Nicolini, Rosella

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper proposes an empirical investigation of a few outcomes of economic geography models. First, we intend to assess the role of the home market effect and of the level of transport costs on the outgoing trade flows. For this purpose we refer to a regional context looking at a chosen sample of European regions. In the second part, we focus on the analysis of the trade flows of a sample for Italian industrial districts. In addition, in this last part, attention is drawn to state the benefits that the common sharing of services provide to the firms that belong to a district, above all in terms of their international competitiveness.

Suggested Citation

  • Nicolini, Rosella, 2000. "Local Agglomerations and Trade: an Empirical Investigation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2000018, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:2000018
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2000-18.pdf
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    References listed on IDEAS

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    1. Johan Torstensson, 1998. "Country size and comparative advantage: An empirical study," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 590-611, December.
    2. Soubeyran, Antoine & Thisse, Jacques-Francois, 1999. "Learning-by-Doing and the Development of Industrial Districts," Journal of Urban Economics, Elsevier, vol. 45(1), pages 156-176, January.
    3. Leamer, Edward E. & Levinsohn, James, 1995. "International trade theory: The evidence," Handbook of International Economics,in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 26, pages 1339-1394 Elsevier.
    4. Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
    5. David Hummels & James Levinsohn, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 799-836.
    6. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
    7. Davis, Donald R. & Weinstein, David E., 1999. "Economic geography and regional production structure: An empirical investigation," European Economic Review, Elsevier, vol. 43(2), pages 379-407, February.
    8. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters,in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
    9. Weder, Rolf, 1995. "Linking Absolute and Comparative Advantage to Intra-industry Trade Theory," Review of International Economics, Wiley Blackwell, vol. 3(3), pages 342-354, October.
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    11. Paul Krugman, 1992. "Geography and Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610868, January.
    12. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
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    More about this item

    Keywords

    Agglomerations; Industrial Districts; Home Market; Transport Costs; Trade Flows;

    JEL classification:

    • 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)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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