1. The regional costs of market size losses in a EU dismembering process.
- Author
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Capello, Roberta, Caragliu, Andrea, and Fratesi, Ugo
- Subjects
- *
BREXIT Referendum, 2016 , *GROSS domestic product , *EXTERNALITIES , *INTERNATIONAL trade ,ECONOMIC aspects - Abstract
Abstract: The paper measures regional GDP growth losses that a smaller market size caused by the reintroduction of legal and administrative barriers would cause. We model augmented barriers in a Keynesian framework, pointing at four effects: a border effect, stronger for regions close to borders; an exposure effect, stronger for regions open to trade; a centrality effect, affecting areas close to the economic core; a demand concentration effect, stronger for regions close to large trading partners. By estimating border effects with data on EU NUTS 3 regions and simulating a general increase in barriers among EU countries, the four regional effects clearly emerge. [ABSTRACT FROM AUTHOR]
- Published
- 2018
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