This paper provides a new model of firm’s location choices. It integrates a Ricardian model of comparative advantage with the location effects deriving from trade costs, increasing returns to scale, product dif ferentiation, and monopolistic competition. In a two-region,...

Traditional push-and-pull factors offered partial explanations to the size of large urban areas in the third world. Moreover, the growing literature in eco - nomic geography identifies an additional factor exacerbating the phenomenon, namely trade costs. The present study tests econometrically...

This paper presents a two-country two-industry monetary model, with intermediate inputs and transport costs, which builds a bridge between the New Open Economy Macroeconomics and the New Economic Geography literatures. Endogenously asymmetric shocks arise in this model when the exchange rate...

In new economic geography models, geographic concentration cant arise because of workers mobility or vertical linkages between firms. We examine a setup that combines those two approaches in conjunction with local congestion costs. We find that, as trade costs are lowered, the geographic...

Exporting countries are concerned that sanitary standards might shield domestic industry from foreign competition. This study analyzes economic effects of changes in Western Hemisphere sanitary requirements on broiler trade in the Americas. A mathematical programming model detects that if Brazil...

This study offers an empirical microlevel analysis of the pass-through effects of the East African Community Common External Tariff on consumer prices in Kenya. Using data from the Kenya Integrated Household Budget Surveys conducted in 2005 and 2015, this research employs a fixed-effects model...

This paper investigates the novel development of machinery trade pattern in the Central and Eastern Europe (CEE) and analyzes the extent and depth of production networks in Europe from the perspective of their links with East Asia during the past 15 years, 1995~2010. Our descriptive analysis...

This paper describes the dynamic spatial general equilibrium model, Regional Holistic MOdeL(RHOMOLO), developed by the European Commission, where the labour market equilibrium is determined by firms’ labour demand, unemployment and interregional labour migration. We carry out simulations on...

Using a centre-two periphery new economic geography model we study the location and real wage effects of the EU’s Eastern enlargement on current and future EU member countries under pure trade integration and with migration of skilled labour. The quality of final and intermediate products...

The paper studies the effects of regional integration on the incentives of mem - bers and non-members to undertake multilateral trade liberalization. Using a three- country political economy model with imperfect competion, it shows how regionalism can undermine support for multilateralism....