This paper focuses on the location effects of preferential trade areas (PTA) on non-members. More specifically, using a CGE model calibrated to real data, it focuses on the impact of tighter European integration on outsider regions. We argue that because theoretical models analysing PTAs have...

Applying a newly developed CGE-model, we present scenarios for the future economic geography of Europe. The model divides the world into ten regions, of which five are European, and there are 14 industries, of which 12 are imperfectly competitive. With a complete input-output structure, the...

The paper uses a full-scale CGE-model -calibrated on 1992 data- to investigate the effects of European integration on the location of industrial production. Our results reveal large differences among individual industries.

Despite both theoretical and observable advantages of free trade, a number of countries have stuck to a restricted trade regime. Apparently, the gap between the inward oriented economies and the "free trade" world has allowed to become huge before these economies turned to a more outward...

This paper uses a new economic geography model to analyze tax competition between two countries trying to attract internationally mobile capital. Each government may levy a source tax on capital and a lump sum tax on fixed labor. If industry is concentrated in one of the countries, the analysis...

The paper focuses on how localised external, economies of scale created by knowledge spillovers, encourage industrial agglomeration and cause uneven technological development internationally.

The occurence of agglomerations raises several questions: How come that economic activity is agglomerated instead of evenly spread out across space? What implications do agglomerations have for welfare (earnings, employment, etc.) and economic policy? How do increased globalisation and...

We test for internal and external economies of scale in European manufacturing employing a more disaggregated data set than what has been used in earlier analyses, and aim to separate externalities from common business cycle effects. Fifteen European manufacturing industries in Germany, France,...

This paper focuses on what the driving forces behind industry localisation in Europe are. Based on traditional as well as new trade theory and new economic geography our cross-sectoral empirical analysis seeks to explain the pattern of relative and absolute concentration of manufacturing...

In this paper we analyse vertical industry linkages and the extent to which these work as channels for externalities. First, activity based externalities stemming from output growth and output level in vertically linked industries are tested for. Second, we aim at revealing the importance of a...