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Public Procurement, Market Integration, and Income Inequalities
Author(s) -
Trionfetti Federico
Publication year - 2001
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00261
Subject(s) - externality , economics , procurement , welfare , dimension (graph theory) , inequality , work (physics) , liberalization , market integration , international economics , microeconomics , international trade , public economics , market economy , mathematical analysis , mathematics , management , mechanical engineering , pure mathematics , engineering
Aggregate demand externalities are the source of the cumulative processes of the new economic geography. In this paper these externalities drive the endogenous emergence of the pattern of international specialization in integrating economies. A distinguishing feature of this work is that it considers two aspects of market integration simultaneously: reduction of trade costs, and liberalization of the public procurement market. The first dimension has been widely studied. Adding the second dimension, which is on the policy agenda of the WTO and the EU, yields insights concerning the pattern of international specialization, income inequalities, and welfare.