Puga, Diego and Venables, Tony (1995) Preferential trading arrangements and industrial location. CEPDP, 267. Centre for Economic Performance, London School of Economics and Political Science, London, UK.
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Abstract
This paper considers the location effects of geographically discriminatory trade policy. A preferential move towards a customs union pulls industry into the integrating countries. When internal barriers fall below some critical level, input-output links between imperfectly competitive firms lead some customs union countries to gain industry at the expense of others. A hub- and-spoke arrangement favours location in the hub, with better reciprocal access induces agglomeration in the hub and may trigger disparities between the spokes.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://cep.lse.ac.uk |
| Additional Information: | © 1995 the authors |
| Uncontrolled Keywords: | integration, free trade area, hub-and-spoke, agglomeration |
| Library of Congress subject classification: | H Social Sciences > HF Commerce H Social Sciences > HD Industries. Land use. Labor |
| Journal of Economic Literature Classification System: | F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies F - International Economics > F1 - Trade > F15 - Economic Integration R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade |
| Sets: | Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) |
| Rights: | http://www.lse.ac.uk/library/rights/LSERO.htm |
| Identification Number: | 267 |
| URL: | http://eprints.lse.ac.uk/2151/ |
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