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...

Technical barriers (standards), import licenses and tariffs may be deployed as means of limiting the market access of foreign firms. The present paper examines these measures in a setting of monopolistic competition. We find that, if protection focuses predominantly on the number of foreign...

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...

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...

In this article, we develop an endogenous growth model to analyze the impact of knowledge spillovers, the disparity in initial endowments and production technologies on economic growth of two trading regions. We found that the growth rates of technology development of the two regions become...

This paper investigates the effects of competing communication networks on trade patterns in a Chamberlinian-Ricardian model of monopolistically competitive firms with a continuum of industries that require communication services in production. We conclude that intraindustry trade between...

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...

This paper examines the relationship between market integration and product diversification in a Chamberlinian model of monopolistic competition. In the first version of the model, production of the firm is organised in activities producing either one or two horizontally differentiated...