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The bell-shaped curve of international trade openness: a panel data test for OECD countries

Author

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  • Leonardo Gatica Arreola

    (Universidad de Guadalajara)

  • Mauricio Ramirez Grajeda

    (Universidad de Guadalajara)

Abstract

By partially following Head and Mayer's (2003) suggestions, in this paper we test Puga's (1999) fundamental bell-shaped relationship between trade openness and agglomeration in the industrial sector. The main result is that concentration of both employment and production may arise if a pair of countries is involved in a process of trade liberalization.

Suggested Citation

  • Leonardo Gatica Arreola & Mauricio Ramirez Grajeda, 2006. "The bell-shaped curve of international trade openness: a panel data test for OECD countries," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 3(1), pages 7-34, Julio-Dic.
    • Handle: RePEc:qua:journl:v:3:y:2006:i:1:p:7-34
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    References listed on IDEAS

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    Cited by:

    1. Chenggang Wang & Tiansen Liu & Jinliang Wang & Dongrong Li & Duo Wen & Polina Ziomkovskaya & Yang Zhao, 2022. "Cross-Border E-Commerce Trade and Industrial Clusters: Evidence from China," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    2. Ramírez Grajeda, Mauricio & de León Arias, Adrián, 2009. "Spatial implications of international trade under the new economic geography approach," MPRA Paper 18076, University Library of Munich, Germany.

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    More about this item

    Keywords

    trade openness; agglomeration; international trade cost; spatial pattern of production.;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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