Investment Creation and Diversion in Europe

Baldwin, Richard; Forslid, Rikard; Haaland, Jan I.

doi:10.1111/j.1467-9701.1996.tb00704.x

Cited by 64 publications

(19 citation statements)

References 6 publications

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“…Thus the model is in the line of CGE models introduced by Haaland and Norman (1992) and, Venables (1991, 1992) and extended by Baldwin, Forslid and Haaland (1996), Allen, Gasiorek and Smith (1998), and Keuschnigg and Kohler (1996). The main modification of the Haaland-Norman structure is that our model adopts large-group rather than small-group monopolistic competition.…”

Section: Features Of the Cge Modelmentioning

confidence: 99%

EU Integration and Outsiders a Simulation Study of Industrial Location

Forslid

Haaland

Knarvik³

2001

Economic Impact of EU Membership on Entrants

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This paper focuses on the location effects of preferential trade areas (PTA) on non-members. More specifically, using a CGE model calibrated to real data, it focuses on the impact of tighter European integration on outsider regions. We argue that because theoretical models analysing PTAs have very few contact points with reality, further research is needed to evaluate whether the effects highlighted by these models -catastrophic agglomeration and non-monotonic relocation, for example -are theoretical aberrations of highly specific models, or important effects that help us explain real world events. In our 14-sector, 10-region model, we find broad confirmation for the theoretical PTA models, and in particular for the Puga-Venables effects. We find that tighter European integration has a significant impact on Central and Eastern European countries, but the impact on the other regions of the world is rather small. Our findings do however, suggest that the simple models of economic geography analysing PTAs miss important elements. The most important of these are comparative advantage and real trade costs. JEL Classification codes: ___, C68, F10, F12, F15, R12

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Section: Features Of the Cge Modelmentioning

confidence: 99%

EU Integration and Outsiders a Simulation Study of Industrial Location

Forslid

Haaland

Knarvik³

2001

Economic Impact of EU Membership on Entrants

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“…Asia PTAs could still be statistical outliers. Potentially more important, however, is that economic arguments draw on examples of PTAs outside the region, mostly the North American Free Trade Agreement (NAFTA) (Chase 2003;Milner 1997) or European integration Baldwin, Forslid, and Haaland 1996). Do these apply to Asia at all?…”

Section: Generic Explanations Of Pta Formationmentioning

confidence: 99%

The Economic Logic of Asian Preferential Trade Agreements: The Role of Intra-Industry Trade

Manger¹

2014

Journal of East Asian Studies

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“…Spain and Portugal benefited from significant increases in inward FDI as a result of EC membership but Greece did not. Finally, Baldwin, Forslid and Haaland (1996) simulate various scenarios using a computable general equilibrium model. Among other things, they simulate the effects of the 1992 Single Market Programme when the European Free Trade Association (EFTA) is included and excluded from EU 92.…”

Section: Empirical Evidencementioning

confidence: 99%

26 The North American Experience

Nnadi¹

2016

Early Onset Scoliosis

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This paper examines the relationship between regional economic integration and FDI in North America, where two RIAs have been established over the past decade: a bilateral free trade agreement between Canada and the U.S. (CUSTA) and a trilateral agreement (NAFTA) incorporating Mexico as well. The North American experiences suggest substantially more modest impacts of regional trade agreements on intra-regional trade creation and extraregional FDI stimulation than is associated with the earlier stages of EU integration. At the same time, there is support for the European findings that trade and investment impacts will differ across countries within the integrating region. These results serve as a caution against generalizing from earlier experience when forecasting the impacts of expanded economic integration within Europe or the Americas. The consequences of regional economic integration are sufficiently conditioned by inherited policies, as well as by existing macroeconomic conditions, to make extrapolation from historical experience very risky and potentially misleading.JEL classification: F02, F21, F23

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Investment Creation and Diversion in Europe

Cited by 64 publications

References 6 publications

EU Integration and Outsiders a Simulation Study of Industrial Location

EU Integration and Outsiders a Simulation Study of Industrial Location

The Economic Logic of Asian Preferential Trade Agreements: The Role of Intra-Industry Trade

26 The North American Experience

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