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European integration, FDI and the geography of French trade
[journal article]
Abstract This paper uses an augmented gravity model to investigate whether the 1978-2000 process of European integration has changed the geography of trade within France, with a particular focus on trends in border regions. We support the finding that, once controlled for bilateral distance, origin- and dest... view more
This paper uses an augmented gravity model to investigate whether the 1978-2000 process of European integration has changed the geography of trade within France, with a particular focus on trends in border regions. We support the finding that, once controlled for bilateral distance, origin- and destination-specific characteristics, French border regions trade on
average 73% more with neighboring countries than predicted by the gravity norm. They perform even better (129%) if they have good cross-border transport connections with the neighboring country. However, this higher performance has fallen drastically in the French border regions at the periphery of Europe over the period of integration. We show that this downward trend is partly due to the decrease in the propensity of foreign affiliates to trade with their home country. This shift in trade focus is less pronounced for the Belgian-Luxembourg and German firms located in regions with better access to the EU core.... view less
Classification
Area Development Planning, Regional Research
Political Economy
Free Keywords
Gravity; Border Regions; Foreign Direct Investment; Transportation Infrastructure; F15; F23; R12; R58
Document language
English
Publication Year
2010
Page/Pages
p. 1-21
Journal
Regional Studies, 45 (2010) 5
DOI
https://doi.org/10.1080/00343401003713357
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)