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International trade and internal geography revisited

  • BEHRENS, Kristian

    ()

    (LATEC - CNRS UMR 5118 - MSH - Université de Bourgogne)

Trade liberalization and trade policy obviously affect the internal distribution of economic activities within a liberalizing country. We show that the impact of decreasing international trade costs on the regional distribution of economic activities crucially depends on the value of transport costs in-ternal to the country. Trade liberalization in developing countries with poor internal infrastructures and small volumes of interregional trade is likely to increase regional disparities, while developed countries with good internal infrastructures and large volumes of interregional trade are likely to experience redispersion. We argue that the way transport and trade costs are modeled might have a crucial impact on the results obtained. / La libéralisation du commerce et la politique commerciale affectent manifestement la répartition interne de l'activité économique d'un pays. Nous montrons que l'impact d'une baisse des coûts d'échange sur la répartition régionale de l'activité économique dépend de manière cruciale de la valeur des coûts de transport à l'intérieur du pays. Tandis qu'une libéralisation dans les pays en voie de développement, caractérisés par de mauvaises infrastructures et de faibles volumes d'échanges interrégionaux, est susceptible d'accroître les inégalités régionales, cette même libéralisation dans les pays développés est susceptible de mener à une redispersion de l'activité. Nous montrons que la manière dont nous modélisons les coûts de transport et d'échange pourrait significativement influencer les résultats obtenus.

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Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne in its series LEG - Document de travail - Economie with number 2003-09.

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Length: 34 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:lat:legeco:2003-09
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  1. Puga, Diego & Venables, Anthony J, 1998. "Agglomeration and Economic Development: Import Substitution Vs. Trade Liberalization," CEPR Discussion Papers 1782, C.E.P.R. Discussion Papers.
  2. OTTAVIANO, Gianmarco & THISSE, Jacques-François, 1999. "Agglomeration and trade revisited," CORE Discussion Papers 1999041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  7. Fujita, Masahisa & Krugman, Paul, 1995. "When is the economy monocentric?: von Thunen and Chamberlin unified," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 505-528, August.
  8. FUJITA, Masahisa & THISSE, Jacques-François, 2002. "Agglomeration and market interaction," CORE Discussion Papers 2002011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Matthieu Crozet & Pamina Koenig-Soubeyran, 2004. "Trade liberalization and the internal geography of countries," Chapters, in: Multinational Firms’ Location and the New Economic Geography, chapter 5 Edward Elgar.
  10. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
  11. BEHRENS, Kristian, 2003. "Asymmetric trade and agglomeration," LEG - Document de travail - Economie 2003-10, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
  12. Keith Head & Thierry Mayer, 2000. "Non-Europe : The Magnitude and Causes of Market Fragmentation in the EU," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00267441, HAL.
  13. Puga, Diego, 1997. "The Rise and Fall of Regional Inequalities," CEPR Discussion Papers 1575, C.E.P.R. Discussion Papers.
  14. Monfort, Philippe & Nicolini, Rosella, 1998. "Regional Convergence and International Integration," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1998022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  15. Martin, Philippe & I.P. Ottaviano, Gianmarco, 1999. "Growing locations: Industry location in a model of endogenous growth," European Economic Review, Elsevier, vol. 43(2), pages 281-302, February.
  16. Baldwin, Richard & Forslid, Rikard, 1997. "The Core-Periphery Model and Endogenous Growth," CEPR Discussion Papers 1749, C.E.P.R. Discussion Papers.
  17. Mori, Tomoya & Nishikimi, Koji, 2002. "Economies of transport density and industrial agglomeration," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 167-200, March.
  18. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  19. Monfort, Philippe & van Ypersele, Tanguy, 2003. "Integration, Regional Agglomeration and International Trade," CEPR Discussion Papers 3752, C.E.P.R. Discussion Papers.
  20. Henderson, J. Vernon & Shalizi, Zmarak & Venables, Anthony J., 2000. "Geography and development," Policy Research Working Paper Series 2456, The World Bank.
  21. Tabuchi, Takatoshi & Thisse, Jacques-François, 2002. "Regional Specialization and Transport Costs," CEPR Discussion Papers 3542, C.E.P.R. Discussion Papers.
  22. Holger C. Wolf, 1997. "Patterns of Intra- and Inter-State Trade," NBER Working Papers 5939, National Bureau of Economic Research, Inc.
  23. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, June.
  24. BEHRENS, Kristian, 2003. "Trade is not necessary for agglomeration to arise," LEG - Document de travail - Economie 2003-07, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
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