Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/68197 
Year of Publication: 
2012
Series/Report no.: 
CESifo Working Paper No. 4000
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper studies the evolution of trade freeness and of the agglomeration of production, as well as their relationship, at the sectoral level in a group of EU countries. Our main objective is to test at the sectoral level the conclusions of previous aggregate analyses which find that an inverse relationship between trade costs and agglomeration holds in case of the Home Market Effect. Our sectoral focus requires an original testing approach based on the combination of different bootstrap distributions.
Subjects: 
trade freeness
agglomeration of production
home market effect
bootstrap
JEL: 
F10
F12
F15
Document Type: 
Working Paper
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