Integration and transition: Scenarios for the location of production and trade in Europe

Rikard Forslid, Jan I. Haaland, Karen Helene M. Knarvik and Ottar Mæstad ()
Authors registered in the RePEc Author Service: Karen Helene Ulltveit-Moe

The Economics of Transition, 2002, vol. 10, issue 1, 93-117

Abstract: Applying a newly developed CGE‐model, we present scenarios for the future economic geography of Europe. The model divides the world into ten regions, five of which are European, and 14 industries, of which 12 are imperfectly competitive. With a complete input‐output structure, the model captures comparative advantage mechanisms as well as intra‐industry trade and ‘new economic geography’ agglomeration forces. The simulations focus on the consequences of successful transformation in Eastern Europe. The results indicate that transformation and European integration are of great importance for Eastern Europe, while the overall effects for other European regions are small. Individual sectors in the EU, such as Textiles and Transport Equipment, are, however, in some cases strongly affected. JEL classification: C68, F12, F17, R11.

Date: 2002
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https://doi.org/10.1111/1468-0351.00104

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Working Paper: Integration and Transition: Scenarios for Location of Production and Trade in Europe (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:etrans:v:10:y:2002:i:1:p:93-117

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