TY - JOUR
T1 - A propos Brexit: on the breaking up of integration areas – an NEG analysis
AU - Commendatore, Pasquale
AU - Kubin, Ingrid
AU - Sushko, Iryna
PY - 2021
Y1 - 2021
N2 - Inspired by Brexit, the paper explores the effects of splitting an integration area or ‘Union’ on trade patterns and the spatial distribution of industry. A linear three-region New Economic Geography (NEG) model is developed and two possible situations before separation are considered: agglomeration and dispersion. By analogy with the Brexit options, soft and hard separation scenarios are considered. Firms in the leaving region may move to the larger Union market, even on the periphery, relocation substituting trade; or firms in the Union may move in the more isolated leaving region, escaping from competition. The paper also analyses deeper Union integration following separation. Instances of multistability and complex dynamics are found.
AB - Inspired by Brexit, the paper explores the effects of splitting an integration area or ‘Union’ on trade patterns and the spatial distribution of industry. A linear three-region New Economic Geography (NEG) model is developed and two possible situations before separation are considered: agglomeration and dispersion. By analogy with the Brexit options, soft and hard separation scenarios are considered. Firms in the leaving region may move to the larger Union market, even on the periphery, relocation substituting trade; or firms in the Union may move in the more isolated leaving region, escaping from competition. The paper also analyses deeper Union integration following separation. Instances of multistability and complex dynamics are found.
U2 - 10.1080/17421772.2019.1701702
DO - 10.1080/17421772.2019.1701702
M3 - Journal article
SN - 1742-1772
VL - 16
SP - 97
EP - 120
JO - Spatial Economic Analysis
JF - Spatial Economic Analysis
ER -