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The EU’s New Economic Geography after the Eastern Enlargement

Author

Listed:
  • Marques, Helena

    (University of Newcastle upon Tyne)

  • Metcalf, Hugh

    (University of Newcastle upon Tyne)

Abstract

Using a centre-two periphery new economic geography model we study the location and real wage effects of the EU’s Eastern enlargement on current and future EU member countries under pure trade integration and with migration of skilled labour. The quality of final and intermediate products differs across countries according to their effective endowments of human capital engaged in R&D. Allowing for migration prevents the relocation of firms into the integrating periphery. Moreover, the location of firms differs according to the sectors’ skill and R&D intensity, low skill and low R&D firms tending to locate in the Eastern and Southern peripheries.

Suggested Citation

  • Marques, Helena & Metcalf, Hugh, 2003. "The EU’s New Economic Geography after the Eastern Enlargement," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 627-641.
    • Handle: RePEc:ris:integr:0252
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    Citations

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    Cited by:

    1. Helena Marques, 2008. "Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 364-408, April.

    More about this item

    Keywords

    new economic geography; trade; EU enlargement;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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