Quotation Commendatore, Pasquale, Kubin, Ingrid, Petraglia, Carmelo, Sushko, Iryna. 2014. Regional integration, international liberalisation and the dynamics of industrial agglomeration. Journal of Economic Dynamics and Control 48 265-287.


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Abstract

This paper presents a 3-region footloose-entrepreneur new economic geography model. Two symmetric regions are part of an economically integrated area(the Union),while the third region represents an outside trade partner. We explore how the spatial allocation of industrial production and employment within the Union is affected by changes in two aspects of trade liberalisation, regional Integration and globalisation, conditional to the skill endowment and the market size of the outside region. Our main contribution pertains to the analysis of the local and global dynamics of the specified factor mobility process. We show that significant parameter ranges exist for which an asymmetric distribution of economic activities is one of the possible long-run outcomes which may allow a smooth transition to Agglomeration (in contrast to the NEG typical catastrophic scenario .In addition, we show that multistability is pervasive and that some attractors are Milnor attractors. Both results reinforce the NEG narrative on the importance of initial conditions for the long-run Location of industrial activity.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Economic Dynamics & Control
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-A, VW-B, WH-A
Language English
Title Regional integration, international liberalisation and the dynamics of industrial agglomeration
Volume 48
Year 2014
Page from 265
Page to 287

Associations

Projects
COST Action IS1104: The EU in the new economic complex geography
People
Kubin, Ingrid (Details)
External
Commendatore, Pasquale (Italy)
Petraglia, Carmelo (Italy)
Sushko, Iryna (Ukraine)
Organization
Institute for International Economics and Development IN (Details)
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