Trade policies, concentration, growth and welfare
Rafael González-Val (),
Luis Lanaspa () and
Fernando Pueyo ()
MPRA Paper from University Library of Munich, Germany
The aim of this paper is to analyse, through a theoretical model, the effects that the trade integration of two countries may have on industrial location, growth and welfare. The conclusions reached finally depend both on whether the import or the export costs are affected by the trade policies on which the integration process is based and on whether the rich or the poor country introduces them. In general, when integration leads to an increase of industrial concentration in the rich country, the growth rate increases and welfare improves in both countries. If integration means that industry moves to the poor country, the growth rate decreases; in spite of this, in this case the poor country can also improve its welfare.
Keywords: Trade integration; industrial location; growth; welfare (search for similar items in EconPapers)
JEL-codes: H54 F15 R12 F43 (search for similar items in EconPapers)
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https://mpra.ub.uni-muenchen.de/9730/1/MPRA_paper_9730.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/16031/1/MPRA_paper_16031.pdf revised version (application/pdf)
Journal Article: Trade policies, concentration, growth and welfare (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:9730
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