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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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)|
|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)
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