Title

EU enlargement and the internal geography of countries

Document Type

Journal article

Source Publication

Journal of Comparative Economics

Publication Date

6-2004

Volume

32

Issue

2

First Page

265

Last Page

279

Publisher

Academic Press

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.

DOI

10.1016/j.jce.2004.02.009

Print ISSN

01475967

E-ISSN

10957227

Publisher Statement

Copyright © 2004 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.

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Recommended Citation

Crozet, M., & Soubeyran, P. K. (2004). EU enlargement and the internal geography of countries. Journal of Comparative Economics, 32(2), 265-279. doi: 10.1016/j.jce.2004.02.009