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Journal of Economic Integration 2003 March;18(1) :42-59.
The Effects of Regional Free Trade Agreements on Industrial Structure: An Extension of Krugman's Economic Geography Model (1991)

Jung Hur 

National University of Singapore
Copyright ©2003 Journal of Economic Integration
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 non-higher 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.
Keywords: Economic geography | Regional trade agreements
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