Regional integration and economic development: An empirical approach

Arbeitspapier

This paper contributes to the empirical literature by providing a quantitative measurement of the influence of regional trade integration on productivity. For this purpose we address the link between trade and productivity thanks to knowledge spillovers in a multi-country model. The interdependence that connects countries in an international web promotes exchanges of goods, services, people, capital and hence ideas, knowledge, innovation, and technology. Economic integration encourages thus both new ideas and their diffusion. We observe that a country's productivity depends on its own R&D efforts as well as the R&D efforts of its trading partners. These R&D spillovers can then spread across countries and sectors. Thanks to the transfer of technology allowed by bilateral trade and investment, regional trade integration has a positive impact on long-term growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB/TR 15 Discussion Paper ; No. 21

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Economic Integration ; Economic Growth of Open Economies ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; One, Two, and Multisector Growth Models ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes ; Size and Spatial Distributions of Regional Economic Activity ; General Equilibrium and Welfare Economic Analysis of Regional Economies
• Subject: regional economic integration ; endogenous growth ; economic geography

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dion, David-Pascal
• Event: Veröffentlichung
• (who): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (where): München
• (when): 2004

Further information

• DOI: doi:10.5282/ubm/epub.13527
• Handle: http://hdl.handle.net/10419/93737
• URN: urn:nbn:de:bvb:19-epub-13527-6
• Last update: 10.03.2025, 11:43 AM CET