The EU’s New Economic Geography after the Eastern Enlargement

Helena Marques and Hugh Metcalf
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Hugh Metcalf: University of Newcastle upon Tyne, Postal: University of Newcastle Business School, University of Newcastle upon Tyne, Ridley Building, Newcastle upon Tyne, NE1 7RU, UK.

Journal of Economic Integration, 2003, vol. 18, 627-641

Abstract:

Using a centre-two periphery new economic geography model we study the location and real wage effects of the EU’s Eastern enlargement on current and future EU member countries under pure trade integration and with migration of skilled labour. The quality of final and intermediate products differs across countries according to their effective endowments of human capital engaged in R&D. Allowing for migration prevents the relocation of firms into the integrating periphery. Moreover, the location of firms differs according to the sectors’ skill and R&D intensity, low skill and low R&D firms tending to locate in the Eastern and Southern peripheries.

Keywords: new economic geography; trade; EU enlargement (search for similar items in EconPapers)
JEL-codes: F10 F20 L60 R10 R30 (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0252

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