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Integration and transition : scenarios for location of production and trade in Europe

Forslid, Rikard; Haaland, Jan Ingvald Meidell; Midelfart, Karen Helene; Mæstad, Ottar
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URI
http://hdl.handle.net/11250/162970
Date
1999-05
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  • Discussion papers (SAM) [640]
Abstract
Applying a newly developed CGE-model, we present scenarios for the future

economic geography of Europe. The model divides the world into ten regions, of

which five are European, and there are 14 industries, of which 12 are imperfectly

competitive. With a complete input-output structure, the model captures comparative

advantage mechanisms as well as intra-industry trade and “new economic geography”

agglomeration forces. The simulations focus on successful transformation in Eastern

Europe, and on further European or global integration. The results indicate that both

transformation and European integration are of great importance for Eastern Europe, while the effects for other European regions are moderate.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
1999:13

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