Showing 1 - 10 of 18
This paper analyses some of the forces that are changing the spatial distribution of activity in the world economy. It draws on the 'new economic geography' literature to argue the importance of increasing returns to scale and cumulative causation processes in shaping the productivity and...
Persistent link: https://www.econbiz.de/10005797263
This paper explains why capital does not flow from the North to the South - the Lucas Paradox - with a New Economic Geography model that incorporates mobile capital, immobile labour, and productively heterogeneous firms. In contrast to neoclassical theories, the results show that even a small...
Persistent link: https://www.econbiz.de/10005797299
Despite the fact that importing and exporting are extremely rare firm activities, economists generally devote little attention to the role of firms when discussing international trade. This paper summarizes key differences between trading and non-trading firms, demonstrates how these differences...
Persistent link: https://www.econbiz.de/10005510456
This paper exploits the division of Germany after the Second World War and the reunification of East and West Germany in 1990 as a natural experiment to provide evidence of the importance of market access for economic development. In line with a standard new economic geography model, we find...
Persistent link: https://www.econbiz.de/10005151014
This paper estimates a structural model of economic geography using cross-country data on per capita income, bilateral trade, and the relative price of manufacturing goods. More than 70% of the variation in per capita income can be explained by the geography of access to markets and to sources...
Persistent link: https://www.econbiz.de/10005016687
Internet development holds the promise of transmitting economic value across physical space at zero marginal cost. In such a 'weightless economy', what factors matter for the location of economic activity and thus for economic development? This paper sketches a model of spatial dynamics over a...
Persistent link: https://www.econbiz.de/10005016803
We test implications of economic geography models for location, size and growth of cities with US Census data for 1900 û 1990. Our tests involve non-parametric estimations of stochastic kernels for the distributions of city sizes and growth rates, conditional on various measures of market...
Persistent link: https://www.econbiz.de/10005016957
This paper combines detailed production data (from the ARD) with international trade data by port to examine the impact of accession to the EEC on the location of UK manufacturing. The paper has two main objectives. The first is to test the implications of models of economic geography for the...
Persistent link: https://www.econbiz.de/10005017028
This paper examines how the geography of UK international trade has changed since the UK¿s accession tothe European Economic Community using a newly constructed data set that gives a detailed breakdown ofthe UK¿s imports and exports by both port of entry and exit and commodity. Our results...
Persistent link: https://www.econbiz.de/10005017150
This paper develops a general test of factor price equalization that is robust to unobserved regional productivity differences, unobserved region- industry factor quality differences and variation in production technology across industries. We test relative factor price equalization across...
Persistent link: https://www.econbiz.de/10005017180