Regional effects of European integration

Haaland, Jan I.; Norman, Victor; Hamilton, Carl

doi:10.1017/cbo9780511983368.009

Cited by 16 publications

(26 citation statements)

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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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“…In particular, we simulate the changes in productivity due to di¤erent trade costs by recomputing c hh s for alternative freeness matrices P s . Using equations (14) we can then map changes in c hh s to changes in average costs, markups, prices, quantities and pro…ts. Two scenarios are considered.…”

Section: From Theory To Simulationmentioning

confidence: 99%

“…The common language variable is a dummy indicating whether a couple of countries share a common o¢ cial language. 14 The distance variables are in km and cover simple measures (dist and distcap) and weighted measures (distw and distwces). Simple (geodesic) distances are calculated following the great circle formula, which uses the latitudes and longitudes of the most important cities/agglomerations (in terms of population) for the dist variable and the geographic coordinates of the capital cities for the distcap variable.…”

Section: Datamentioning

confidence: 99%

“…This is achieved computing the new equilibrium c hh s 's by (13) as well as the associated average performance variables by (14) and then comparing them with the initial ones. In particular, we consider two scenarios: Table 11 shows the average 'costs of non-Europe' by country.…”

Section: Simulationmentioning

confidence: 99%

“…Based on our simulations, autarky reduces average European productivity by 12:58%. Using equations (14) we can further map these productivity losses into a 15:83 percentage increases in average markups and average prices. As less productive and smaller …rms are able to enter and survive, average pro…ts (quantities) fall by 23:26 (31:31) per cent.…”

Section: Simulationmentioning

confidence: 99%

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Trade Integration, Firm Selection and the Costs of Non-Europe

2006

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Welfare effects of 1992: A general equilibrium assessment for EC and EFTA countries

Haaland

1993

Empirica

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Abstract. In this paper production, trade and welfare effects of European integration are discussed, with particular emphasis on the effects for the EC and EFTA. Insights from previous partial and general equilibrium analyses of the intemal market are reviewed, and new model simulations are presented. In addition to the "standard" experiments of 1992 -as reduced trade costs and as full market integration -for the EC alone, and for the European Economic Area (EEA), an intermediate case, with full integration in the EC but only lower trade costs between the EC and EFTA, is analysed. All cases show that EFTA will benefit significantly from freer trade and closer integration with the EC. With regard to non-European regions, the simulations of European integration show some degree of"trade diversion", but stylized model experiments indicate that a successful outcome of the Uruguay-round may more than offset the trade-diverting effects of 1992.JEL codes: D58, F12, F13, F15, F17.

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Regional effects of European integration

Cited by 16 publications

References 0 publications

EU Integration and Outsiders a Simulation Study of Industrial Location

EU Integration and Outsiders a Simulation Study of Industrial Location

Trade Integration, Firm Selection and the Costs of Non-Europe

Welfare effects of 1992: A general equilibrium assessment for EC and EFTA countries

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