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The Effects of Regional Free Trade Agreements on Industrial Structure: An Extension of Krugman’s Economic Geography Model

Author

Listed:
  • Hur, Jung

    (National University of Singapore)

Abstract

Extending Krugman’s (1991) economic geography model, this paper examines the stability of an industrial structure resulting from the production shifting-in effect of the formation of regional trade agreements. This paper claims that nonhigher external trade costs against non-member countries may be needed in order to secure the divergence of industries into the area of a regional trade agreement.

Suggested Citation

  • Hur, Jung, 2003. "The Effects of Regional Free Trade Agreements on Industrial Structure: An Extension of Krugman’s Economic Geography Model," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 42-59.
    • Handle: RePEc:ris:integr:0225
    as

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    More about this item

    Keywords

    Economic geography; Regional trade agreements;

    JEL classification:

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

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