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 The Journal of Economic Integration |
ABSTRACT |
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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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