We study the effects of import competition on industry locations patterns in a small open economy with two regions. Domestic productivity growth converges to the international rate through firm-level investment in process innovation. With firms locating production and innovation in their lowest...

Globalization and European integration are substantially changing the interregional division of labor in Europe and the industrial specialization of European regions, thereby potentially affecting the extent of disparities between countries and regions. This paper reviews several theoretical...

We study the effects of import competition on industry locations patterns in a small open economy with two regions. Domestic productivity growth converges to the international rate through firm-level investment in process innovation. With firms locating production and innovation in their lowest...

In this paper we develop an analytically solvable and structurally estimable economic geography model and apply it to predict migration flows for the period following the CEE’s integration with the EU. The main innovation of our approach is that it endogenises both explanatory variables and...

This paper analyzes the European integration of the Turkish industry in view of a comparative trade analysis of the Turkish economy and the EU economies. We perform a thorough depiction of the various aspects of the trade integration of Turkey, most notably in the fields of the trade patterns,...

Firms generally choose to locate their production where profits are maximized. As costs affect profits, trade-offs between two marginal costs – employees' wages and transport costs – may be important for decisions regarding location. Wages tend to be greater in industrial centres and...