The Spatial Effects of Trade Openness: A Survey

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Serval ID
serval:BIB_EDDD6C7EFB5D
Type
Article: article from journal or magazin.
Publication sub-type
Review (review): journal as complete as possible of one specific subject, written based on exhaustive analyses from published work.
Collection
Publications
Institution
Title
The Spatial Effects of Trade Openness: A Survey
Journal
Review of World Economics
Author(s)
Brülhart M.
ISSN
1610-2878
Publication state
Published
Issued date
01/2011
Peer-reviewed
Oui
Volume
147
Number
1
Pages
59-83
Language
english
Abstract
This paper surveys the literature on the implications of trade liberalisation for intra-national economic geographies. Three results stand out. First, neither urban systems models nor new economic geography models imply a robust prediction for the impact of trade openness on spatial concentration. Whether trade promotes concentration or dispersion depends on subtle modelling choices among which it is impossible to adjudicate a priori. Second, empirical evidence mirrors the theoretical indeterminacy: a majority of cross-country studies find no significant effect of openness on urban concentration or regional inequality. Third, the available models predict that, other things equal, regions with inherently less costly access to foreign markets, such as border or port regions, stand to reap the largest gains from trade liberalisation. This prediction is confirmed by the available evidence. Whether trade liberalisation raises or lowers regional inequality therefore depends on each country's specific geography.
Keywords
Trade liberalisation, Regional inequality, Agglomeration, Urban systems
Web of science
Open Access
Yes
Create date
07/10/2010 10:32
Last modification date
01/10/2019 7:20
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