Present paper studies the within-country regional effects of trade liberalization in transition countries. We argue that FDI inflows can be an important factor to accelerate the regional adjustment process in the home country. In order to underpin this theoretically, we first augment the new...

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...