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

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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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  • Fabrice Darrigues & Jean-Marc Montaud, 2001. "Les pays du sud doivent-ils craindre l'élargissement de l'UEM aux PECO ?," Documents de travail 63, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  • Handle: RePEc:mon:ceddtr:63
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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • 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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