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Les pays du sud doivent-ils craindre l'élargissement de l'UEM aux PECO ?

We build an economic geography model with capital mobility and heterogenous fiscal policy in order to analyse the impact of eastern countries entrance in the EU in terms of location of production. First we show that in a symetic framework the fiscal policy is determined by the stage of regional integration. With low transport costs, a country shouldincrease its fiscality in order to attract multinational firms. Second, we introduce asymetriesin the model in order to capture the differences between south and eastern european countries.The simulations show that regional integration should lead to a an agglomeration proces in southeuropean countries. A way to curb this proces would be to set up a lower fiscality in easterncountries. (Full text in French)

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Paper provided by Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV in its series Documents de travail with number 63.

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Length: 15 pages
Date of creation: Oct 2001
Date of revision:
Handle: RePEc:mon:ceddtr:63
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