Trade policies, concentration, growth and welfare

Rafael González-Val, Luis Lanaspa (llanas@unizar.es) and Fernando Pueyo

MPRA Paper from University Library of Munich, Germany

Abstract: 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: F15 F43 H54 R12 (search for similar items in EconPapers)
Date: 2008-05-26
New Economics Papers: this item is included in nep-opm
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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)

Related works:
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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