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Putting new economic geography to the test : free-ness of trade and agglomeration in the EU regions

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dc.creator Brakman, Steven
dc.creator Garretsen, Harry
dc.creator Schramm, Marc
dc.date 2005
dc.date.accessioned 2013-10-16T07:02:28Z
dc.date.available 2013-10-16T07:02:28Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/19030
dc.identifier ppn:503695556
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/19030
dc.description Based on a new economic geography (NEG) model by Puga (1999), we use the equilibrium wage equation to estimate two key structural model parameters for the NUTS II EU regions. These estimations enable us to come up with an empirically grounded free-ness of trade parameter. In line with NEG theory, the estimation results show that a spatial wage structure exists for the EU regions. By going back to the theoretical model we then analyze the implications of the free-ness of trade parameter for the degree of agglomeration. Our main findings suggest that agglomeration forces still have only a limited spatial reach in the EU. Agglomeration forces appear to be rather localized. At the same time, confronting our empirical results with the underlying new economic geography model also brings out the limitations of empirical research in new economic geography.
dc.language eng
dc.relation CESifo working papers 1566
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject R12
dc.subject J31
dc.subject F12
dc.subject ddc:330
dc.subject Neue ökonomische Geographie
dc.subject Freihandel
dc.subject Agglomerationseffekt
dc.subject EU-Staaten
dc.title Putting new economic geography to the test : free-ness of trade and agglomeration in the EU regions
dc.type doc-type:workingPaper


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