Quotation Commendatore, Pasquale, Kubin, Ingrid, Sushko, Iryna. 2020. Obtaining a hub position: A New Economic Geography analysis of industry location and trade network structures. Metroeconomica.


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Abstract

We present a linear New Economic Geography model with three regions, one remote region and two regions that entertain a trade agreement with low bilateral trade costs. Only one of these two integrated regions has the outside option to conclude an additional trade agreement with the remote region and to obtain a hub position. We show that the new trade agreement has a substantial impact on industry location and trade patterns and that the effects strongly depend upon level of integration between the initial two regions. It is not always the region with the outside option that profits from using it. Finally, we also show that higher firm mobility may lead to complex dynamics.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Metroeconomica
Citation Index SSCI
WU-Journal-Rating new VW-D
Language English
Title Obtaining a hub position: A New Economic Geography analysis of industry location and trade network structures
Year 2020
Reviewed? Y
DOI https://doi.org/10.1111/meca.12314
Open Access N

Associations

People
Kubin, Ingrid (Details)
External
Commendatore, Pasquale (University of Naples, Italy)
Sushko, Iryna (Kyiv School of Economics, Ukraine)
Organization
Institute for International Economics and Development IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5304 Labour market research (Details)
5335 Political economic theory (Details)
5343 Economic theory (Details)
5344 Foreign trade (Details)
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