Regional Convergence and International Integration

Monfort, Philippe; Nicolini, Rosella

doi:10.1006/juec.1999.2167

Cited by 125 publications

(103 citation statements)

References 8 publications

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“…In other words, external trade liberalisation is expected to increase regional inequalities in the country that opens up to trade. Similar results are put forward by Alonso-Villar [2001], and Monfort and Nicolini [2000]. Krugman and Elizondo [1996], obtain the opposite result, in the same context of a model with three regions, two domestic and one external, where the domestic dispersion force is due to land rent and commuting costs and it is thus exogenous and independent of trade costs.…”

Section: Stylised Facts and Related Literaturesupporting

confidence: 73%

Regional integration, international liberalisation and the dynamics of industrial agglomeration

Commendatore¹,

Kubin²,

Petraglia³

et al. 2014

Journal of Economic Dynamics and Control

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Section: Stylised Facts and Related Literaturesupporting

confidence: 73%

Regional integration, international liberalisation and the dynamics of industrial agglomeration

Commendatore¹,

Kubin²,

Petraglia³

et al. 2014

Journal of Economic Dynamics and Control

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“…This may either foster or impede domestic agglomeration, depending, in particular, on the overall strength of dispersion forces (Brülhart 2011). If the relatively weak market-crowding effect is the only dispersion force (as in Krugman 1991) foreign trade liberalization will tend to foster domestic agglomeration because it weakens the dispersion force more than the agglomeration forces (Monfort andNicolini 2000, Paluzie 2001). In the presence of additional dispersion forces, e.g., in the form of congestion (Krugman and Livas Elizando 1996), or stronger competition effects, e.g.…”

Section: European and German Integrationmentioning

confidence: 99%

New Economic Geography and Reunified Germany at Twenty: A Fruitful Match?

Bickenbach¹,

Bode²

2013

Spatial Economic Analysis

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Abstract:We qualitatively match new economic geography (NEG) to stylized facts on German economic integration after 1989. We find that NEG may explain German integration reasonably well. Germany may currently be close to the peak of the bell curve, which describes the long-run relationship between integration and agglomeration in Germany. As a consequence, further economic integration between the two parts of Germany may eventually foster redispersion of economic activity toward East Germany. We also identify limitations of NEG for explaining German integration, most notably the analytical complexity of multi-region models and its neglect of knowledge spillovers and labor pooling. JEL: F12, F15, R12, R23

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“…From a theoretical perspective, the uneven evolution of economic growth due to internationalization activity across space is most prominently discussed by the new economic geography (NEG) literature, where long-run spatial divergence is typically the result of a concentration of economic activity in certain agglomerations. In almost all NEG models, free trade and capital movement play a key role; however, whether agglomeration or dispersion forces dominate depends crucially on the underlying modeling choices: while one bulk of models favors internal economic dispersion in the course of external trade liberalization with unchanged internal transportation costs (Krugman and Livas Elizondo 1996;Behrens et al 2007), alternative model specifications instead find increasing agglomeration forces as a result of enhancing trade integration (Monfort and Nicolini 2001;Paluzie 2001). These conflicting predictions basically hold irrespective of whether within-country difference in terms of topography and infrastructure are assumed to be present or not (Brülhart 2011).…”

Section: Introductionmentioning

confidence: 99%

Measuring Regional Spillovers in Long- and Short-Run Models of Total Factor Productivity, Trade, and FDI

Mitze

2012

International Regional Science Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis article applies the novel concept of global panel cointegration to analyze the role played by trade and foreign direct investment (FDI) activity in driving regional total factor productivity (TFP). Using West German state-level data for the period 1976-2008, the approach allows us to identify the magnitude of direct trade and FDI effects as well as spatial spillovers from these variables. The author finds that the inclusion of spatial lags significantly improves the fit of the empirical model and allows us to strongly reject the null of no cointegration among the variables in the full spatial specification. For the long-run cointegration equation, the empirical results hint at export-and FDI-led growth. Additionally, outward FDI activity shows to have positive spatial spillover effects among German regions, while the spatial patterns of import and inward FDI activity indicate substitution effects of interregional input-output linkages in favor of international ones over the sample period 1976-2008. In the short run, TFP growth is predominantly affected by changes in exports, inward and outward FDI stocks, where the latter variable also provokes positive spillovers. The author uses alternative spatial weighting matrices based on geographical information as well as interregional goods transport flows to check the 1 Rheinisch-Westfðlisches Institut für Wirtschaftsforschung (RWI), Essen, Germany Dieser Beitrag ist mit Zustimmung des Rechteinhabers aufgrund einer (DFG-geförderten) Allianz-bzw. Nationallizenz frei zugänglich. This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively. robustness of the obtained spillover effects in the long and short run. Here, the results turn out to be similar for the different empirical specifications employed throughout the analysis. Finally, summing over the four variables to get a direct and indirect net effect of internationalization activity, the author finds that the direct effect is always positive, while the indirect net effect is positive in the short run but slightly negative in the long-run equation.

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Regional Convergence and International Integration

Cited by 125 publications

References 8 publications

Regional integration, international liberalisation and the dynamics of industrial agglomeration

Regional integration, international liberalisation and the dynamics of industrial agglomeration

New Economic Geography and Reunified Germany at Twenty: A Fruitful Match?

Measuring Regional Spillovers in Long- and Short-Run Models of Total Factor Productivity, Trade, and FDI

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