1468-0351/asset/ECOT_left.gif?v=1&s=c8fc7379202380c362773c802573be1bc7e7d468)
1468-0351/asset/ECOT_right.gif?v=1&s=5ee8f769a19e8bffb80757b077236c74d42fc1c2)
Integration and transition: Scenarios for the location of production and trade in Europe
Article first published online: 10 JAN 2003
DOI: 10.1111/1468-0351.00104
The European Bank for Reconstruction and Development 2002
1468-0351/asset/cover.gif?v=1&s=2ee37afb0920ce1ad2a2f32331985fbd0b577875 "Economics of Transition")
Additional Information
How to Cite
Forslid, R., Haaland, J. I., Knarvik, K. H. M. and Maestad, O. (2002), Integration and transition: Scenarios for the location of production and trade in Europe. Economics of Transition, 10: 93–117. doi: 10.1111/1468-0351.00104
Publication History
- Issue published online: 10 JAN 2003
- Article first published online: 10 JAN 2003
- Abstract
- Cited By
Keywords:
- international trade;
- economic geography;
- transition economics
Applying a newly developed CGE-model, we present scenarios for the future economic geography of Europe. The model divides the world into ten regions, five of which are European, and 14 industries, of which 12 are imperfectly competitive. With a complete input-output structure, the model captures comparative advantage mechanisms as well as intra-industry trade and ‘new economic geography’ agglomeration forces. The simulations focus on the consequences of successful transformation in Eastern Europe. The results indicate that transformation and European integration are of great importance for Eastern Europe, while the overall effects for other European regions are small. Individual sectors in the EU, such as Textiles and Transport Equipment, are, however, in some cases strongly affected.
JEL classification: C68, F12, F17, R11.