Trade, growth and geography: A synthetic

David Dion

Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

Abstract: Economic integration affects economic development through two main channels: growth and localization of the economic activities. The theories of endogenous growth and economic geography enable us to understand these mechanisms. We study in this paper their similarities and specificities before suggesting their useful combination within a single model. Indeed, both theories are based on the same Spence-Dixit-Stiglitz monopolistic competition framework. However, they suggest two different approaches to deal with the impact of economic integration. We consider that a third path, by proposing a synthetic approach, better answers the issues raised in terms of economic convergence and divergence by these two sets of models.

Keywords: regional economic integration; endogenous growth; economic geography (search for similar items in EconPapers)
JEL-codes: F12 F15 F43 O18 O30 O41 R11 R12 R13 (search for similar items in EconPapers)
Date: 2004-03
New Economics Papers: this item is included in nep-dev, nep-geo, nep-hpe and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:trf:wpaper:22

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