The Effects of Regional Free Trade Agreements on Industrial Structure: An Extension of Krugman’s Economic Geography Model

Jung Hur

Journal of Economic Integration, 2003, vol. 18, 42-59

Abstract:

Extending Krugman’s (1991) economic geography model, this paper examines the stability of an industrial structure resulting from the production shifting-in effect of the formation of regional trade agreements. This paper claims that nonhigher external trade costs against non-member countries may be needed in order to secure the divergence of industries into the area of a regional trade agreement.

Keywords: Economic geography; Regional trade agreements (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0225

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