Effects of Regional Free Trade Agreements on Industrial Structure: An Extension of Krugman's Economic Geography Model (1991)
Extending Krugman (1991)'s economic geography model, this paper examines a stability of an industrial structure resulting from production shifting-in effect of a formation of regional trade agreements. This paper claims that non-higher external trade costs against non-member countries may need in order to secure the divergence of industries into the area of a regional trade agreement.
|Date of creation:||Nov 2001|
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