Integration, Geography and the Burden of History

Gianmarco Ottaviano

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: This paper develops a simple two-region two-sector general equilibrium model of trade and migration where one monopolistically competitive sector generates local pecuniary externalities. The aim is to gain insight on the question whether economic integration can be expected to increase the differences in industrial structure between more and less developed regions. It is shown that a reduction in trade and/or migration costs weakens the lock-in effect of historical events while strengthening the role of expectations.

Date: 1997-09
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Related works:
Journal Article: Integration, geography and the burden of history (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:283

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