The effect of trade on agglomeration within regions

Carolina Guevara-Rosero

No 1530, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: This paper assesses for the first time the effect of regional trade openness on agglomeration within regions, using regional data on the trade of Colombia. The results of the panel model show that the effect of trade is sufficiently strong to shape the spatial configuration, a structure that rarely changes. The effect varies across regions. On the one hand, trade enhances spatial agglomeration within regions with large home market and location advantages. On the other hand, trade induces dispersion within regions that lack access to international trade or historical advantage. These results hold when controlling for the natural course of agglomeration (regions-pecific time trends), congestion effects in main cities and road infrastructure within regions.

Keywords: Trade openness; spatial concentration; intra-inequality; congestion; cities; economic geography (search for similar items in EconPapers)
JEL-codes: F10 O54 R12 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-geo and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: The effect of trade on agglomeration within regions (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1530

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