International Trade, Geography and Specialisation: Empirical Evidence

Marius Brülhart

Département d’Économétrie et d’Économie Politique (DEEP), University of Lausanne

THIS PAGE WAS originally SET UP as a reading list FOR A COURSE I TAUGHT IN SPRING 2001 (University of Paris I Panthéon-Sorbonne: DEA in International Economics). BY POPULAR DEMAND, I CONTINUE TO UPDATE REFERENCES SPORADICALLY. Most papers can be downloaded as PDF files from this web site (access is password protected).


Topics

1.    INTRODUCTION

1.1  Theory and Overviews 

1.2  Empirics: Overview

2.    DESCRIPTIVES: SPECIALISATION AND TRADE VOLUMES

2.1  Trade Structures

2.2  Sectoral Specialisation / Geographic Concentration

2.3  Geographical Clustering of Firms

2.4  The Gravity Model and Border Effects

2.5  Heterogeneous Firms, FDI and Vertical Specialisation

3.    ANALYTICAL EMPIRICS: TESTING THEORIES

3.1  Regressing Specialisation on its Determinants

3.2  Testing Neoclassical Trade Theory: Leontief, Etc.

3.3  Testing the "New" Trade Theory: The Home-Market Effect, Etc.

4.    POLICY-RELATED ISSUES

4.1  Trade and Wages

4.2  Geography, Productivity and Regional Inequality

4.3  Geography, Agglomeration and Taxes

4.4  Trade and Factor-Market Adjustment


Readings

1. INTRODUCTION

1.1 Theory and Overviews

· Baldwin, Richard E.; Forslid, Rikard; Martin, Philippe; Ottaviano, Gianmarco I.P. and Robert-Nicoud, Frédéric (2003) Economic Geography and Public Policy. Princeton University Press.

· Behrens, Christian; Ottaviano, Gianmarco I.P. and Mion, Giordano (2007) “Industry Reallocations in a Globalising Economy”, CEPR Discussion Paper No. 6049. (download pdf)

· Brakman, Steven; Garretsen, Harry and van Marrewijk, Charles (2001) An Introduction to Geographical Economics, Cambridge University Press.

· Combes, Pierre-Philippe; Mayer, Thierry and Thisse, Jacques-François (2008) Economic Geography: The Integration of Regions and Nations, Princeton University Press.

· Fujita, Masahisa; Krugman, Paul and Venables, Anthony (1999) The Spatial Economy: Cities, Regions and International Trade, MIT Press: Cambridge, MA.

· Fujita, Masahisa and Thisse, Jacques-François (2002) Agglomeration and Market Interaction, CEPR Discussion Paper No. 3362. (download pdf)

· Henderson, J. Vernon and Thisse, Jacques-François (2004) Handbook of Regional and Urban Economics - Volume 4: Cities and Geography, Elsevier.

· Markusen, James; Melvin, James; Kaempfer, William and Maskus, Keith (1995) International Trade: Theory and Evidence, McGraw-Hill.

· Martin, Ron (1999) "The New 'Geographical Turn' in Economics: Some Critical Reflections". Cambridge Journal of Economics, vol. 23, pp. 65-91. (download pdf)

· Neary, Peter (2001) "Of Hype and Hyperbolas: Introducing the New Economic Geography". Journal of Economic Literature, vol. 39, pp. 536-561. (download pdf)

· Neary, Peter (2009) "Putting the "New" into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics". CEPR Discussion Papers, No. 7231. (download pdf)

· Ottaviano, Gianmarco I.P. and Puga, Diego (1998) "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'". World Economy, vol.21, pp. 231-252.

· Rossi-Hansberg, Esteban (2006) "A Spatial Theory of Trade". American Economic Review, vol. 95, pp. 1464-1491. (download pdf)

· Sjöberg, Örian and Sjöholm, Fredrik (2002) "Common Ground? Prospects for Integration the Economic Geographers of Geographers and Economists". Environment and Planning A, vol. 34, pp. 467-486. (download pdf)

1.2 Empirics: Overview

· Brakman, S.; Garretsen, H.; Gorter, J.; van der Horst, A. and Schramm, M. (2005) "New Economic Geography, Empirics, and Regional Policy". Netherlands Bureau for Economic Policy Analysis working paper. (download pdf)

· Brülhart, Marius (1998) "Economic Geography, Industry Location and Trade: The Evidence". World Economy, vol. 21, pp. 775-801. (download pdf)

· Head, Keith and Mayer, Thierry (2004) "The Empirics of Agglomeration and Trade". In: Henderson, V. and Thisse, J.F. (eds.) Handbook of Regional and Urban Economics, Elsevier. (download pdf).

· Helpman, Elhanan (1999) "Explaining the Structure of Foreign Trade: Where do We Stand?" Journal of Economic Perspectives, vol. 13, pp. 121-124. (download pdf)

· Krugman, Paul (1994) "Empirical Evidence on the New Trade Theories: The Current State of Play". In: New Trade Theories, CEPR Conference Report, London.

· Leamer, Edward E. (1994) "Testing Trade Theory". In: Greenaway, D. and Winters, L.A. (ed.) Surveys in International Trade, Blackwell, Oxford. (download pdf)

· Leamer, Edward E. and Levinsohn, James (1995) "International Trade Theory: The Evidence". In: Grossmann, G. and Rogoff, K. (eds.) Handbook of International Economics, vol. 3, Elsevier, New York.

· Overman, Henry; Redding, Stephen and Venables, Anthony (2001) "The Economic Geography of Trade, Production and Income: A Survey of Empirics". CEPR Discussion Paper No. 2978. (download pdf)

· Feenstra, Robert C., Lipsey, Robert E. and Bowen, Harry P. (1997) "World Trade Flows, 1970-1992; With Production and Tariff Data", NBER Working Paper No. 5910.(download pdf)

2. DESCRIPTIVES: SPECIALISATION AND TRADE VOLUMES

2.1 Trade Structures

· Balassa, Bela (1965) "Trade Liberalisation and 'Revealed' Comparative Advantage". Manchester School, vol. 33, 99-123.

· Bernhofen, D.M. and Brown, J.C. (2005) “An Empirical Assessment of the Comparative Advantage Gains from Trade: Evidence from Japan” American Economic Review, vol. 95, pp. 208-225. (download pdf)

· Brülhart, Marius and Elliott, Robert (1998) "Adjustment to the European Single Market: Inferences from Intra-Industry Trade Patterns". Journal of Economic Studies, vol. 25., pp. 225-247. (download pdf)

· Rice, Patricia; Stewart, Martin and Venables, Anthony J. (2002) “The Geography of Intra-Industry Trade: Empirics”. CEPR Discussion Paper No. 3368. (download pdf)

2.2 Sectoral Specialisation / Geographic Concentration

· Arbia, Guiseppe (2000) "Empirics for Regional Convergence and Polarization: The Role of Spatial Dependence". Mimeo, University of Pescara. (download pdf)

· Brülhart, Marius (1998) "Trading Places: Industrial Specialisation in the European Union". Journal of Common Market Studies, vol. 36, No. 3, pp. 319-346. (download pdf)

· Brülhart, Marius (2001) "Evolving Geographical Specialisation of European Manufacturing Industries". Weltwirtschaftliches Archiv, vol. 137, pp. 215-243. (download pdf)

· Brülhart, Marius (2001) "Growing Alike or Growing Apart? Industrial Specialisation of EU Countries". In: Charles Wyplosz (ed.) The Impact of EMU on Europe and the Developing Countries, Oxford University Press. (download pdf)

· Brülhart, Marius (2006) "The Fading Attraction of Central Regions: An Empirical Note on Core-Periphery Gradients in Western Europe". Spatial Economic Analysis, vol. 1, pp. 227-235. (download pdf)

· Brülhart, Marius and Traeger, Rolf (2005) "An Account of Geographic Concentration Patterns in Europe". Regional Science and Urban Economics, vol. 35, pp. 597-624. (download pdf)

· Desmet, Klaus and Fafchamps, Marcel (2005) "Changes in the Spatial Concentration of Employment across US Counties: a Sectoral Analysis". Journal of Economic Geography, vol. 5, pp. 261-284. (download pdf)

· Desmet, Klaus and Fafchamps, Marcel (2006) "Employment Concentration across US Counties". Regional Science and Urban Economics, vol. 36, pp. 482-509. (download pdf)

· Kim, Sukkoo (1995) "Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in U.S. Regional Manufacturing Structure, 1860-1987". Quarterly Journal of Economics, vol. 110, pp. 881-908.

· Kim, Sukkoo (1998) "Economic Integration and Convergence: US Regions, 1840-1987". Journal of Economic History, vol. 58, pp. 659-683. (download pdf)

· Hallet, Martin (2000) "Regional Specialisation and Concentration in the EU". Economic Papers, European Commission Directorate-General for Economic and Financial Affairs, No. 141. (download pdf)

· Redding, Stephen (2002) "Specialization Dynamics". Journal of International Economics, vol. 58, pp. 299-334. (download pdf)

· Storper, Michael; Chen, Yun-chung and De Paolis, Fernando (2002) "Trade and the Location of Industries in the OECD and European Union". Journal of Economic Geography, vol. 2, pp. 73-107. (download pdf)

2.3 Geographical Clustering of Firms

· Devereux, Michael P.; Griffith, Rachel and Simpson, Helen (1999) "The Geographic Distribution of Production Activity in the UK". Institute for Fiscal Studies Working Paper, No. 99/26. (download pdf)

· Dumais, Guy; Ellison, Glenn and Glaeser Edward L. (2002) "Geographic Concentration as a Dynamic Process". Review of Economics and Statistics, vol. 84, pp. 193-204. (download pdf)

· Duranton, Gilles and Overman, Henry (2005) "Testing for Localisation Using Micro-Geographic Data". Review of Economic Studies, vol. 72, pp. 1077-1106. (download pdf)

· Ellison, Glenn and Glaeser, Edward L. (1997) "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach". Journal of Political Economy, vol. 105, pp. 889-927. (download pdf)

· Henderson, J. Vernon (2003) "Marshall's Scale Economies". Journal of Urban Economics, vol. 53, pp. 1-28. (download pdf)

· Lafourcade, Miren and Mion, Giordano (2007) "Concentration, Agglomeration and the Size of Plants". Regional Science and Urban Economics, vol. 37, pp. 46-68. (download pdf)

· Marcon, Eric and Puech, Florence (2002) "Measures of Geographic Concentration of Industries: Improving Distance-Based Methods". Mimeo, University of Paris I. (download pdf)

· Maurel, F. and Sédillot, B. (1999) "A Measure of the Geographic Concentration in French Manufacturing Industries". Regional Science and Urban Economics, vol. 29, pp. 575-604. (download pdf)

2.4 The Gravity Model and Border Effects

· Anderson, James A. and van Wincoop, Eric (2003) “Gravity with Gravitas: A Solution to the Border Puzzle”. American Economic Review, vol. 93, pp. 170-192. (download pdf)

· Baldwin, Richard E. and Taglioni, Daria (2006) “Gravity for Dummies and Dummies for Gravity Equations”. NBER Working Paper, No. 12516. (download pdf)

· Bröcker, Johannes (1984) “How Do International Trade Barriers Affect Interregional Trade?” In Å.E. Andersson, W. Isard, and T. Puu (eds)  Regional and Industrial Development Theories: Models and Empirical Evidence, Amsterdam: North Holland.

· Carrère, Céline (2006) “Revisiting the Effects of Regional Trade Agreements on Trade Flows with Proper Specification of the Gravity Model”. European Economic Review, vol. 50, pp. 223-247. (download pdf)

· Chen, Natalie (2002) "Intra-National Versus International Trade in the European Union" Journal of International Economics, vol. 63, pp. 93-118. (download pdf)

· Deardorff, Alan V. (1998) "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?" In: Frankel, Jeffrey A. (ed.) The Regionalization of the World Economy, University of Chicago Press and NBER. (download pdf)

· Eaton, Jonathan and Kortum, Samuel (2002) "Technology, Geography and Trade". Econometrica, vol. 70, pp. 1741-1779. (download pdf)

· Evans, Carolyn (2003) "The Economic Significance of National Border Effects". American Economic Review, vol. 93, pp. 1291-1312. (download pdf)

· Evenett, Simon J. and Keller, Wolfgang (2002) "On Theories Explaining the Success of the Gravity Equation". Journal of Political Economy, vol. 110, pp. 281-316. (download pdf)

· Haveman, Jon D. and Hummels, David (1997) "Gravity, What is it good for? Theory and Evidence on Bilateral Trade". Mimeo, Purdue University, W. Lafayette (IN).

· Head, Keith (2000) "Gravity for Beginners". Mimeo, University of British Columbia, Vancouver. (download pdf)

· Head, Keith and Mayer, Thierry (2000) "Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU". Weltwirtschaftliches Archiv, vol. 136, pp. 285-314. (download pdf)

· Head, Keith and Mayer, Thierry (2002) "Illusory Border Effects: Distance Mismeasurement Inflates Estimates of Home Bias in Trade". CEPII Working Paper, No. 2002-01, Paris. (download pdf)

· Helliwell, John F. (1997) "National Borders, Trade and Migration". Pacific Economic Review, vol. 2, pp. 165-185. (download pdf)

· McCallum, John (1995) "National Borders Matter: Canada-U.S. Regional Trade Patterns". American Economic Review, vol. 85, pp. 615-623. (download pdf)

· Rose, Andrew K. (2000) "One Money, One Market: The Effect of Common Currencies on Trade". Economic Policy, vol. 30, pp. 9-45.

· Rauch, James E. (1999) "Networks Versus Markets in International Trade". Journal of International Economics, vol. 47, pp. 317-345.

· Santos Silva, J.M.C. and Tenreyro, Silvana (2006) "The Log of Gravity". Review of Economics and Statistics, vol. 88(4), pp. 641-658. (download pdf)

· Wei, Shang-Jin (1996) "How Reluctant are Nations in Global Integration?" NBER Working Paper, No. 5531. (download pdf)

· Wolf, Holger (2000) "Intra-National Home Bias in Trade" Review of Economics and Statistics, vol. 82, pp. 555-563. (download pdf)

2.5 Heterogeneous Firms, FDI and Vertical Specialisation

· Antràs, Pol (2003) “Firms, Contracts and Trade Structure”. Quarterly Journal of Economics, vol. 118, pp. 1054-1073. (download pdf)

· Baldwin, Richard E. (2005) “Heterogeneous Firms and Trade: Testable and Untestable Properties of the Melitz Model”. NBER Working Papers, No. 11471. (download pdf)

· Bernard, Andrew B.; Jensen, J. Bradford; Redding, Stephen J. and Schott, Peter K. (2007) “Firms in International Trade”. CEPR Discussion Papers, No. 6277. (download pdf)

· Bernard, Andrew B.; Eaton, Jonathan; Jensen, J. Bradford and Kortum, Samuel (2003) “Plants and Productivity in International Trade”. American Economic Review, vol. 93, pp. 1268-1290. (download pdf)

· Bernard, Andrew B. and Jensen, J. Bradford (1999) “Exceptional Exporter Performance: Cause, Effect, or Both?”. Journal of International Economics, vol. 47, pp. 1-25. (download pdf)

· Bernard, Andrew B. and Jensen, J. Bradford (2004) “Why Some Firms Export”. Review of Economics and Statistics, vol. 86, pp. 561-569. (download pdf)

· Blonigen, Bruce A.; Davies, Ronald B. and Head, Keith (2003) "Estimating the Knowledge-Capital Model of the Multinational Enterprise: Comment". American Economic Review, vol. 93, pp. 980-994. (download pdf)

· Carr, David L.; Markusen, James R. and Maskus, Keith E. (2001) "Estimating the Knowledge-Capital Model of the Multinational Enterprise". American Economic Review, vol. 91, pp. 693-708. (download pdf)

· Clerides, Sofronis K.; Lach, Saul and Tybout, James R. (1998) “Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco”. Quarterly Journal of Economics, vol. 113, pp. 903-947. (download pdf)

· Eaton, Jonathan; Kortum, Samuel  and Kramarz, Francis (2004) “Dissecting Trade: Firms, Industries and Export Destinations”. American Economic Review, vol. 94, ppl 150-154. (download pdf)

· Greenaway, David and Kneller, Richard (2007) "Firm Heterogeneity, Exporting and Foreign Direct Investment". Economic Journal, vol. 117, pp. F134-F161. (download pdf).

· Hanson, Gordon H.; Mataloni, Raymond J. and Slaughter, Matthew J. (2005) “Vertical Production Networks in Multinational Firms”. Review of Economics and Statistics, vol. 87, pp. 664-678. (download pdf)

· Head, Keith and Ries, John (2003) “Heterogeneity and the FDI Versus Export Decision of Japanese Manufacturers”. Journal of the Japanese and International Economies, vol. 17, pp. 448-467. (download pdf)

· Helpman, Elhanan (2007) “Trade, FDI, and the Organization of Firms”. Journal of Economic Literature, vol. 44, pp. 589-630. (download pdf)

· Helpman, Elhanan; Melitz, Marc J. and Rubinstein, Yona (2006) “Trading Partners and Trading Volumes“. Mimeo, Harvard University. (download pdf)

· Helpman, Elhanan; Melitz, Marc J. and Yeaple, Stephen Ross (2004) “Export Versus FDI with Heterogeneous Firms“. American Economic Review, vol. 94, pp. 300-316. (download pdf)

· Hummels, David; Ishii, Jun and Yi, Kei-Mu (2001) “The Nature and Growth of Vertical Specialization in World Trade“. Journal of International Economics, vol. 54, pp. 75-96. (download pdf)

3. ANALYTICAL EMPIRICS: TESTING THEORIES

3.1 Regressing Specialisation on its Determinants

· Amiti, Mary (1999) "Specialisation Patterns in Europe". Weltwirtschaftliches Archiv, vol. 135, pp. 573-593. (download pdf)

· Brülhart, Marius and Trionfetti, Federico (2001) "Industrial Specialisation and Public Procurement: Theory and Empirical Evidence". Journal of Economic Integration, vol. 16, pp. 106-127. (download pdf)

· Brülhart, Marius and Trionfetti, Federico (2004) "Public Expenditure and International Specialisation". European Economic Review, vol. 48, No. 4, pp. 851-881, 2004. (download pdf)

· Haaland, Jan; Kind, Hans Jarle; Midelfart Knarvik, Karen-Helene and Torstensson, Johan (1999) What Determines the Economic Geography of Europe?" CEPR Discussion Paper, No. 2072. (download pdf)

· Midelfart Knarvik, Karen-Helene; Overman, Henry and Venables, Anthony (2000) "Comparative Advantage and Economic Geography: Estimating the Location of Production in the EU". CEPR Discussion Paper, No. 2618. (download pdf)

· Rosenthal, Stuart S. and Strange, William C. (2001) “The Determinants of Agglomeration”. Journal of Urban Economics, vol. 50, pp. 191-229. (download pdf)

3.2 Testing Neoclassical Trade Theory: Leontief, Etc.

· Bernstein, J.R. and Weinstein, D.E. (2002) "Do Endowments Predict the Location of Production? Evidence from National and International Data". Journal of International Economics, vol. 56, pp. 55-76. (download pdf)

· Bowen, H.; Leamer, E. and Sveikauskas, L. (1987) "Multicountry, Multifactor Tests of the Factor Abundance Theory". American Economic Review, vol. 77, pp. 791-809. (download pdf)

· Choi, Y.-S. and Krishna, P. (2004) "The Factor Content of Bilateral Trade: An Empirical Test". Journal of Political Economy, vol. 112, pp. 887-914.

· Davis, Donald R. and Weinstein, David E. (2000) "International Trade as an 'Integrated Equilibrium': New Perspectives". American Economic Review (Papers and Proceedings), vol. 90, pp. 150-154. (download pdf)

· Davis, Donald R. and Weinstein, David E. (2001) "An Account of Global Factor Trade". American Economic Review, vol. 91, pp. 1423-1453. (download pdf)

· Harrigan, James (1997) "Technology, Factor Supplies and International Specialization: Testing the Neoclassical Model". American Economic Review, vol. 87, pp. 475-494.

· Romalis, John (2004) "Factor Proportions and the Structure of Commodity Trade". American Economic Review, vol. 94, pp. 67-97. (download pdf)

· Schott, Peter K. (2003) "One Size Fits All? Heckscher-Ohlin Specialization in Global Production". American Economic Review, vol. 93, pp. 686-708.

· Trefler, Daniel (1995) "The Case of the Missing Trade and Other Mysteries". American Economic Review, vol. 85, pp. 1029-1046. (download pdf)

3.3 Testing the "New" Trade Theory: The Home-Market Effect, Etc.

· Antweiler, Werner and Trefler, Daniel (2002) "Increasing Returns and All That: A View from Trade". American Economic Review, vol. 92, pp. 93-119. (download pdf)

· Behrens, K.; Lamorgese, A.; Ottaviano, G. and Tabuchi, T. (2004) "Testing the Home-Market Effect in a Multi-Country World: The Theory". CEPR Working Paper, No.4468. (download pdf)

· Brülhart, Marius and Trionfetti, Federico (2009) “A Test of Trade Theories When Expenditure Is Home Biased”. European Economic Review, forthcoming. (download pdf)

· Davis, Donald R. and Weinstein, David E. (1996) "Does Economic Geography Matter for International Specialisation?". NBER Working Paper, No. 5706. (download pdf)

· Davis, Donald R. and Weinstein, David E. (1999) "Economic Geography and Regional Production Structure: An Empirical Investigation". European Economic Review, vol. 43, pp. 379-407. (download pdf)

· Davis, Donald R. and Weinstein, David E. (2001) “Bones, Bombs and Break Points: The Geography of Economic Activity”. NBER Working Paper,  No. 8517. (download pdf)

· Davis, Donald R. and Weinstein, David E. (2003) "Market Access, Economic Geography and Comparative Advantage: An Empirical Test". Journal of International Economics, vol. 59, pp. 1-23. (download pdf)

· Debaere, Peter (2005) "Monopolistic Competition and Trade, Revisited: Testing the Model without Testing for Gravity". Journal of International Economics, vol. 66, pp. 249-266. (download pdf)

· Feenstra, Robert C., Markusen, James A. and Rose, Andrew K. (2001) "Using the Gravity Equation to Differentiate Among Alternative Theories of Trade". Canadian Journal of Economics, vol. 32, pp. 430-447. (download pdf)

· Hanson, Gordon and Xiang, Chong (2004) "The Home-Market Effect and Bilateral Trade Patterns", American Economic Review, vol.94, pp. 1108-1129. (download pdf)

· Head, Keith; Mayer, Thierry and Ries, John (2002) "On the Pervasiveness of Home-Market Effects". Economica, vol. 69, pp. 371-90. (download pdf)

· Head, Keith and Ries, John (2001) "Increasing Returns Versus National Product Differentiation as an Explanation of US-Canada Trade". American Economic Review, vol. 91, pp. 858-876. (download pdf)

· Hummels, David and Klenow, Peter J. (2006) "The Variety and Quality of a Nation’s Exports". American Economic Review, vol. 95, pp. 704-723. (download pdf)

· Hummels, David and Levinsohn, James (1995) "Monopolistic Competition and International Trade: Reconsidering the Evidence". Quarterly Journal of Economics, vol. 110, pp. 799-836. (download pdf)

· Redding, Stephen J. and Sturm, Daniel M. (2009) "The Costs of Remoteness: Evidence from German Division and Reunification". American Economic Review, forthcoming. (download pdf)

· Tybout, James (2003) "Plant- and Firm-Level Evidence on 'New' Trade Theories". In Kwan Choi, E. and James Harrigan (eds.), Handbook of International Trade, Oxford: Basil-Blackwell. (download pdf)

4. POLICY ISSUES

4.1 Trade and Wages

· Borjas, G.J., R.B. Freeman, and L.F. Katz (1997) "How Much Do Immigration and Trade Affect Labor Market Outcomes?" Brookings Papers on Economic Activity, vol. 1, pp. 1-90. (download pdf)

· Davis, Donald R. and Weinstein, David E. (1998) "Does European Unemployment Prop Up American Wages? National Labour Markets and Global Trade". American Economic Review, vol. 88, pp. 478-94. (download pdf)

· Epifani, P. and Gancia, G. (2006) “Increasing Returns, Imperfect Competition, and Factor Prices” Review of Economics and Statistics, vol. 88, pp. 583-598. (download pdf)

· Feenstra, R.C. and Hanson, G.H. (1999) "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates for the United States, 1972-1990". Quarterly Journal of Economics, vol. 114, pp. 907-940. (download pdf)

· Haskel, Jonathan (2000) "Trade and Labor Approaches to Wage Inequality". Review of International Economics, vol. 8, pp. 397-408. (download pdf)

· Krugman, Paul (2000) "Technology, Trade and Factor Prices". Journal of International Economics, vol. 50, pp. 51-71. (download pdf)

· Neary, J. Peter (2002) "Competition, Trade and Wages". In: Greenaway, D.; Upward, R. and Wakelin, K. (eds.) Trade, Investment, Migration and Labour Market Adjustment, Basingstoke: Palgrave Macmillan, pp. 28-46. (download pdf)

· Slaughter, M.J (1999) "Globalization and Wages: A Tale of Two Perspectives". World Economy, vol. 22, pp. 609-630. (download pdf)

· Wood, Adrian (1995) "How Trade Hurt Unskilled Workers". Journal of Economic Perspectives, vol. 9, pp. 57-80.

4.2 Geography, Productivity and Regional Inequality

· Amiti, Mary and Cameron, Lisa (2007) "Economic Geography and Wages". Review of Economics and Statistics, vol. 89,  pp. 15-29. (download pdf)

· Audretsch, David B. and Feldman, Maryann P. (1996) "R&D Spillovers and the Geography of Innovation and Production". American Economic Review, vol. 86, pp. 630-640. (download pdf)

· Boldrin, Michele and Canova, Fabio (2001) "Inequality and Convergence in Europe's Regions: Reconsidering European Regional Policies". Economic Policy, vol. 16, pp. 205-253. (download pdf)

· Braunerhjelm, Pontus; Faini, Ricardo; Norman, Victor; Ruane, Frances and Seabright, Paul (2000) Integration and the Regions of Europe: How the Right Policies Can Prevent Polarization, CEPR, London.

· Brülhart, Marius and Koenig, Pamina (2006) "New Economic Geography Meets Comecon: Regional Wages and Industry Location in Central Europe". Economics of Transition, vol. 14, pp. 245-267. (download pdf)

· Brülhart, Marius and Mathys, Nicole (2008) "Sectoral Agglomeration Economies in a Panel of European Regions" Regional Science and Urban Economics, vol. 38(4), pp. 348-362. (download pdf)

· Brülhart, Marius and Sbergami, Federica (2009) “Agglomeration and Growth: Cross-Country Evidence”. Journal of Urban Economics, vol. 65, pp. 48-63. (download pdf)

· Brülhart, Marius and Trionfetti, Federico (2004) "Public Expenditure and International Specialisation". European Economic Review, vol. 48, pp. 851-881. (download pdf)

· Ciccone, Antonio (2002) "Agglomeration Effects in Europe". European Economic Review, vol. 46, pp. 213-228. (download pdf)

· Ciccone, Antonio and Hall, Robert E. (1996) "Production and the Density of Economic Activity". American Economic Review, vol. 86, pp. 54-70. (download pdf)

· Combes, Pierre-Philippe; Duranton, Gilles and Gobillon, Laurent (2004) "Spatial Wage Disparities: Sorting Matters!" CEPR Discussion Paper, No. 4240. (download pdf)

· Corrado, Luisa; Martin, Ron and Weeks, Melvyn (2005) "Identifying and Interpreting Regional Convergence Clusters Across Europe". Economic Journal, vol. 115, pp. C133-C160. (download pdf)

· Hanson, Gordon H. (1997) "Increasing Returns, Trade and the Regional Structure of Wages". Economic Journal, vol. 107, pp. 113-133.

· Hanson, Gordon (1998) "Market Potential, Increasing Returns, and Economic Geography". NBER Working Paper, No. 6429. (download pdf)

· Hanson, Gordon H. (2001) "Scale Economies and the Geographic Concentration of Industry". Journal of Economic Geography, vol. 1, pp. 255-276. (download pdf)

· Hanson, Gordon H. (2005) "Market Potential, Increasing Returns and Geographic Concentration". Journal of International Economics, vol. 67, pp. 1-24. (download pdf)

· Harris, Timothy F. and Ioannides, Yannis M. (2000) "Productivity and Metropolitan Density". Mimeo, Tufts University. (download pdf)

· Mion, Giordano and Naticchioni, Paolo (2005) "Urbanization Externalities, Market Potential and Spatial Sorting of Skills and Firms". CEPR Discussion Paper, No. 5172. (download pdf)

· Head, Keith and Mayer, Thierry (2005) "Regional Wage and Employment Responses to Market Potential in the EU". CEPR Discussion Paper, No. 4908. (download pdf)

· Kim, Sukkoo (1998) "Economic Integration and Convergence: US Regions, 1840-1987". Journal of Economic History, vol. 58, pp. 659-683. (download pdf)

· Puga, Diego (2001) "European Regional Policy in Light of Recent Location Theories". CEPR Discussion Paper, No. 2767. (download pdf)

· Redding, Stephen and Venables, Anthony (2004) "Economic Geography and International Inequality". Journal of International Economics, 62, pp. 53-82. (download pdf)

4.3 Geography, Agglomeration and Taxes

· Baldwin, Richard E. and Krugman, Paul (2004) "Agglomeration, Integration and Tax Harmonisation". European Economic Review, 48, pp. 1-23. (download pdf)

· Borck, Rainald and Pflüger, Michael (2006) "Agglomeration and Tax Competition". European Economic Review, 50, pp. 647-668. (download pdf)

· Brülhart, Marius; Jametti, Mario and Schmidheiny, Kurt (2008) "Do Agglomeration Economies Reduce the Sensitivity of Firm Location to Tax Differentials?". Mimeo. (download pdf)

· Duranton, Gilles; Gobillon, Laurent and Overman, Henry G. (2007) "Assessing the Effects of Local Taxation Using Microgeographic Data". Mimeo. (download pdf)

· Ludema, Rodney D. and Wooton, Ian (2000) "Economic Geography and the Fiscal Effects of Regional Integration". Journal of International Economics, vol. 52, pp. 331-357. (download pdf)

· Ottavioano, Gianmarco I.P. and van Ypersele, Tanguy (2005) "Market Size and Tax Competition". Journal of International Economics, 67, pp. 25-46. (download pdf)

4.4 Trade and Factor-Market Adjustment

· Azhar, Abdul K.M. and Elliott, Robert J.R. (2003) "On the Measurement of Trade-Induced Adjustment". Review of World Economics  (Weltwirtschaftliches Archiv), vol. 139, pp. 419-439.

· Bernard, Andrew B.; Redding, Stephen J. and Schott, Peter K. (2007) "Comparative Advantage and Heterogeneous Firms". Review of Economic Studies, vol. 74, pp. 31-66. (download pdf)

· Brülhart, Marius (2000) "Dynamics of Intraindustry Trade and Labor Adjustment". Review of International Economics, vol. 8, pp. 420-435. (download pdf)

· Brülhart, Marius (2002) "Marginal Intra-Industry Trade: Towards A Measure of Non-Disruptive Trade Expansion". In: Grubel, H.; Lee, and Lloyd, P. (eds.) Frontiers of Research on Intra-Industry Trade, Palgrave-Macmillan, pp. 109-130. (download pdf)

· Brülhart, Marius and Elliott, Robert J.R. (2002) "Labour-Market Effects of Intra-Industry Trade: Evidence for the United Kingdom", Weltwirtschaftliches Archiv, vol. 138(2), pp. 207-228. (download pdf)

· Brülhart, Marius; Elliott, Robert J.R. and Lindley, Joanne (2006) "Intra-Industry Trade and Labour-Market Adjustment: A Reassessment Using Data on Individual Workers" Review of World Economics, vol. 142, pp. 521-545. (download pdf)

· Cabral, Manuel and Silva, Joana (2006) "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations" Review of World Economics., vol. 142, pp. 496-520 (download pdf)

· Davidson, Carl and Matusz, Steven J. (2003) "Should Policy Makers be Concerned About Adjustment Costs?" Mimeo, Michigan State University. (download pdf)

· Davidson, Carl and Matusz, Steven J. (2007) "Trade Liberalization and Compensation" International Economic Review, forthcoming. (download pdf)

· Globerman, Steven and Dean, James W. (1990) "Recent Trends in Intra-Industry Trade and Their Implications for Future Trade Liberalization". Weltwirtschaftliches Archiv, vol. 126, pp. 25-49.

· Haynes, Michelle; Upward, Richard and Wright, Peter (2000) "Smooth and Sticky Adjustment: A Comparative Analysis of the US and UK". Review of International Economics, vol. 8, pp. 517-532. (download pdf)

· Neary, J. Peter (1985) "Theory and Policy of Adjustment in an Open Economy". In: Greenaway, D. (ed.) Current Issues in International Trade, Macmillan, London.