A survey of the relevant literature finds that no really satisfactory answer is yet available on the issue of how important foreign trade really is for labour market developments. European studies have (with some exceptions) arrived at the conclusion that foreign trade has little impact on...

We estimate a linear approximation of the market potential function derived in geography and trade models. Using a spatial econometric estimation approach, border effects can be identified by a differential impact of neighboring regions' purchasing power, depending on whether two regions are...