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Growth and Deeper Regional Integration in a Three-County Model

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  • Walz, Uwe

Abstract

An endogenous growth model of three countries is used to investigate the dynamic effects of deeper economic integration between two countries in the presence of an outside world. The paper looks at the long-run effects of inner-union trade liberalization, the union's external trade policy, and of the relaxation of the inner-union barriers to migration. It is shown that regional integration via inner-union trade liberalization can lead very well to a decline of the steady-state growth rates. Copyright 1997 by Blackwell Publishing Ltd.

Suggested Citation

  • Walz, Uwe, 1997. "Growth and Deeper Regional Integration in a Three-County Model," Review of International Economics, Wiley Blackwell, vol. 5(4), pages 492-507, November.
    • Handle: RePEc:bla:reviec:v:5:y:1997:i:4:p:492-507
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    Cited by:

    1. repec:zbw:bofrdp:2011_009 is not listed on IDEAS
    2. Seppo Honkapohja & Arja H. Turunen-Red & Alan D. Woodland, 2016. "Growth, expectations and tariffs," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1441-1469, November.
    3. Klaus Wälde & Christina Wood, 2004. "The empirics of trade and growth: where are the policy recommendations?," International Economics and Economic Policy, Springer, vol. 1(2), pages 275-292, January.
    4. Steven Bond-Smith, 2021. "The unintended consequences of increasing returns to scale in geographical economics [Investing for prosperity: skills, infrastructure and innovation]," Journal of Economic Geography, Oxford University Press, vol. 21(5), pages 653-681.
    5. Matías Berthelon, 2004. "Growth Effects of Regional Integration Agreements," Working Papers Central Bank of Chile 278, Central Bank of Chile.
    6. Emiko Fukase & L. Alan Winters, 2003. "Possible Dynamic Effects of AFTA for the New Member Countries," The World Economy, Wiley Blackwell, vol. 26(6), pages 853-871, June.
    7. Boiscuvier, Éléonore, 2001. "Innovation, intégration et développement régional," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(2), pages 255-280, juin.
    8. Baldwin, Richard E. & Martin, Philippe, 2004. "Agglomeration and regional growth," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 60, pages 2671-2711, Elsevier.
    9. Seppo Honkapohja & Arja H. Turunen-Red & Alan D. Woodland, 2016. "Growth, expectations and tariffs," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1441-1469, November.
    10. Hur, Jung & Park, Cheolbeom, 2012. "Do Free Trade Agreements Increase Economic Growth of the Member Countries?," World Development, Elsevier, vol. 40(7), pages 1283-1294.
    11. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE.
    12. Tomasz Brodzicki, 2005. "New empirical insights into the growth effects of economic integration within EU," International Trade 0505014, University Library of Munich, Germany.
    13. Uwe Walz, 1997. "Dynamic Effects of Economic Integration: A Survey," Open Economies Review, Springer, vol. 8(3), pages 309-326, July.

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