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Preferential trading arrangements and industrial location

Diego Puga () and Anthony Venables ()

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper considers the location effects of geographically discriminatory trade policy. A preferential move towards a customs union pulls industry into the integrating countries. When internal barriers fall below some critical level, input-output links between imperfectly competitive firms lead some customs union countries to gain industry at the expense of others. A hub- and-spoke arrangement favours location in the hub, with better reciprocal access induces agglomeration in the hub and may trigger disparities between the spokes.

Keywords: integration; free trade area; hub-and-spoke; agglomeration (search for similar items in EconPapers)
JEL-codes: F12 F15 R12 (search for similar items in EconPapers)
Date: 1995-10
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http://eprints.lse.ac.uk/2151/ Open access version. (application/pdf)

Related works:
Journal Article: Preferential trading arrangements and industrial location (1997) Downloads
Working Paper: Preferential Trading Arrangements and Industrial Location (1995) Downloads
Working Paper: Preferential Trading Arrangements and Industrial Location (1995) Downloads
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