The bell-shaped curve of international trade openness: a panel data test for OECD countries

Leonardo Gatica Arreola () and Mauricio Ramirez Grajeda ()
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Leonardo Gatica Arreola: Universidad de Guadalajara
Mauricio Ramirez Grajeda: Universidad de Guadalajara

EconoQuantum, Revista de Economia y Finanzas, 2006, vol. 3, issue 1, 7-34

Abstract: By partially following Head and Mayer's (2003) suggestions, in this paper we test Puga's (1999) fundamental bell-shaped relationship between trade openness and agglomeration in the industrial sector. The main result is that concentration of both employment and production may arise if a pair of countries is involved in a process of trade liberalization.

Keywords: trade openness; agglomeration; international trade cost; spatial pattern of production. (search for similar items in EconPapers)
JEL-codes: F12 F14 F15 (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:qua:journl:v:3:y:2006:i:1:p:7-34

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