Do economic integration and fiscal competition help to explain location patterns?

Arbeitspapier

Do trade integration and fiscal competition contribute to shape the economic landscape? The answer is yes. This paper uses a theoretical model and an econometric analysis of Brazilian regional manufacturing employment data over the period 1990-1998 to address this question. Brazil is a natural case study because this country liberalized trade during the 1990s and their sub-national governments engaged in a fiscal dispute. Econometric results show that trade liberalization has had an impact on spatial developments and this effect is increasing over time. Moreover, subsidies also exert an influence, but their relative importance is falling.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEI Working Paper ; No. B 15-2004

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Economic Integration ; Fiscal Policies and Behavior of Economic Agents: Firm ; State and Local Taxation, Subsidies, and Revenue ; Size and Spatial Distributions of Regional Economic Activity ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General ; Regional Development Planning and Policy
• Subject: Economic Integration ; Fiscal Competition ; Location Patterns ; Manufacturing Industries ; Brazil

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Volpe Martincus, Christian
• Event: Veröffentlichung
• (who): Rheinische Friedrich-Wilhelms-Universität Bonn, Zentrum für Europäische Integrationsforschung (ZEI)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/39574
• Last update: 10.03.2025, 11:43 AM CET