During the last century there has been a huge reduction in trade costs at almost every spatial scale impulsed not only by technological advances applied to transport and communication systems, but also by the spread of regional trade agreements and other related schemes. This estringent fall has...

We develop a theory of economic disintegration that features both endogenously formed tax and trade policies. We show very generally that the economic disintegration of a country from an economic union leads to a deeper integration of international trade institutions. Moreover, we set up a...

Along time the European Union (EU) has been pointed as the most succeeded example of regional integration. Now, this example has been cruelly shaken by the EZ (Euro Zone) crisis, originating increasing doubts about the integration process. It is evident that the proposed solutions for attacking...

The paper evaluates the impact of the EU Eastern enlargement 2004 on the economic performance of border regions located at the frontier to the new member states in the East. These regions were assumed to be particularly affected by the enlargement because of their geographic proximity to the new...

This article deals with the domestic location of German multinational firms which have affiliates in the Czech Republic. Due to the common border the Czech Republic represents an attractive target country for both vertical and horizontal direct investments. In the year 2009 the sum of direct and...

The last decades have witnessed the rise of a new wave of economic regionalism, the most remarkable example of which is the European Union. Regional economic integration is generally interpreted either as an attempt to resist the centrifugal forces of globalisation by strenghtening economic ties...

This paper claims that distance alone is a poor proxy for international transport costs in gravity equations. We develop a theoretical framework with a manufacturing and a transport sector, where the level of manufacturing exports determines the demand for transport. Above a certain threshold,...

The European Neighborhood Policy (ENP), launched in 2004, is a unified European Union (EU) policy framework towards the EU neighboring (ENP) countries. The objective of the ENP is to strengthen the prosperity, stability and security of the (enlarged) EU countries and the ENP countries. Even...

The present paper studies the modelling of inter-regional trade flows in the newly developed general equilibrium model of European Commission, Rhomolo. In contrast to international trade, usually, trade of goods and services between regions is not recorded statistically. As a result, no...