EU enlargement and the internal geography of countries

Matthieu Daniel CROZET, Pamina Koenig SOUBEYRAN

Research output: Journal PublicationsJournal Article (refereed)

51 Citations (Scopus)

Abstract

This paper focuses on the relation between economic integration and the location of economic activity in a country. We extend a new economic geography model in which trade liberalization affects both the agglomeration and dispersion forces that shape the spatial equilibrium. We show that integration generally fosters spatial concentration in the region that has a pronounced advantage in terms of its access to international markets, unless competitive pressure from foreign firms is too high. Our results shed light on the optimal currency area debate concerning the enlarged European Union. The last section provides empirical evidence on Romanian data.
Original languageEnglish
Pages (from-to)265-279
Number of pages15
JournalJournal of Comparative Economics
Volume32
Issue number2
DOIs
Publication statusPublished - 1 Jun 2004
Externally publishedYes

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