Building on recent contributions to the New Economic Geography literature, this paper analyses the relation between asymmetric market size, trade integration and business income tax differentials across countries. First, relying on a foot-loose capital model of tax competition, we illustrate...

This paper studies the consequences of debt policies on the spatial distribution of output in a two-country model. It departs from the usual set up of local public finance by relaxing the assumption of balanced budget. Further, to single out the pure effect of debt the paper eliminates effects...

We study the impact of changing relative market access in an enlarged EU on the economies of incumbent Objective 1 regions. First, we track the impact of external opening on internal spatial configurations in a three-region economic geography model. External opening gives rise to potentially...

New Economic Geography models describe a cumulative process of spatial agglomeration: Firms tend to cluster in locations with good access to demand, and similarly, workers are drawn to regions where market potential is high because the price index is lower there. This paper provides an empirical...

This article builds upon empirical results concerning localised knowledge spillovers to highlight some policy implications within European regions. The analysis emphasises the role of regional innovation policies in supporting the institutions that generate knowledge and learning. However, the...

The "Geography of Innovation" is based on the desire to give empirical foundations to the explanations behind the pronounced spatial polarisation of the innovation activities. It focuses on an attempt to measure the spatial dimension of knowledge externalities, in order to reveal their role in...

Although Foreign Direct Investments (FDI) are as important to the world economy as exports, the extensive literature on trade costs has no strong parallel for FDI. Data are hard to come by, and many of the barriers to FDI are unobservable. This paper circumvents the problem by inferring the...

This paper sheds light on the restrictive nature of rules of origin (ROO) and on the role of diagonal cumulation in mitigating the protectionist content of ROO. Empirical evidence suggests that diagonal cumulation has beneficial effects on trade - particularly among spoke countries. We show that...