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Journal of Comparative Economics 32, 2 (2004) 265-279
EU Enlargement and the Internal Geography of Countries
Matthieu Crozet 1, Pamina Koenig 1, 2
(06/2004)

This paper focuses on the relation between trade openness and the location of economic
activity in a country. The problematic lies in the context of the EU enlargement process and of
its impact on the location of economic activity inside each of the accessing countries. We develop a new economic geography model based on the original Krugman (1991) model, and show that trade liberalization will foster agglomeration of economic activity in the location that has the lowest-cost access to foreign markets. Our results thus differ from Krugman and Livas's (1996) conclusions. We expect the CEECs' economies to shift economic activity towards EU markets. We provide empirical evidence of this result focusing on the post-1991 Romanian urban system.
1 :  Théories et Applications en Microéconomie et Macroéconomie (TEAM)
CNRS : UMR8059 – Université Paris I - Panthéon-Sorbonne
2 :  Centre de Recherche en Économie et Statistique (CREST)
INSEE – École Nationale de la Statistique et de l'Administration Économique
Sciences de l'Homme et Société/Economies et finances
economic integration – urban concentration – agglomeration – CEECs
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