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Regional economics & trade
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A famous debate: the
Mediterranean Sea
Braudel (1949): a self-contained economy
demarcated by economic frontiers
Abulafia (2011): a netor!ed territory
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"conomies of #ariable geometry
$ %e Oresundregion lin!s 'arts of enmar!(ealand*+o'enagen) and
soutern ,eden(,cania*almo .und) in te "/ t is alf tesie of
,iterland and contains a''ro3imately
5 million 'eo'le$ East African Community("A+) includes
/ganda6 %anania6 7enya6 Burundi and Randa"ast Africa s'reads
into "tio'ia and includes a
cun! of ,omalia6 a sate of east +ongo6 astri' of nortern
oambi8ue and all of soutern,udan "A+ already as 125m 'eo'le f
ite3'ands6 it could add as many as 120m more totat number
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+ascadia
$ Cascadia as en#ironmentally concei#ed andreferred to tat
'ortion of acific ort;estort America beteen te +ascade ountains
and te acific s*early 19?0>s %is @initial>
+ascadia includedparts of se#en urisdictions(ortern
+alifornia6
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Analytical issues
$ Agglomerations economies
$ easurement
$ a''ing
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Community competition law
%e rele#ant geogra'ic mar!et com'riseste area in ic te
underta!ings
concerned are in#ol#ed in te su''ly and
demand of 'roducts or ser#ices6 in icte conditions of
com'etition are
sufficiently omogeneousand ic can
be distinguised from neigbouring areasbecause te conditions of
com'etition are
a''reciably different in tose area>
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What is a region?
"urostat definition
A tract of land it more or less definitely mar!edboundaries ic
often ser#es as an administrative unitbelo te le#el of te nation
state Regions a#e anidentity ic is made u' of s'ecific featuressuc
asteir landscape (mountains6 coast6 forest6 etc)6 climate(arid or
ig-rainfall)6 language (eg in Belgium6 Cinlandand ,'ain)6 ethnic
origin (eg ;ales6 nortern ,edenand Cinland or te Bas8ue country) or
shared history
ost6 if not all6 of te abo#e features may be
'articularlynoticeable in one location but are usually to be found
tosome degree o#er suc a ide area tat tey cannot beused in
temsel#es to mar! off one region from anoterDin oter ords6 te
boundaries are EfuyE
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+onte3t factors for regional
economies$ Geographic unevenness im'lies tat go#ernments
generally
cannot simultaneously foster economic 'roduction and s'read it
outsmootly
$ Circular causation im'lies rising concentrations of
economic
'roduction %e mar!et forces of agglomeration6 migration6
ands'ecialiation am'lifies te 'ositi#e or negati#e effects of
grot
$ Neighbourhood effects come it a 'rinci'le for 'olicy
ma!ing:'romote economic integration /ne#enness and circularity
im'lytat it is more difficult for 'laces left beind to catc u'
"conomic
integration is an effecti#e and te most realistic ay to arness
teimmediate benefits from concentration to acie#e te
long-termbenefits of con#ergence
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"conomics of agglomeration
$ Agglomeration('o'ulation density6concentration of 'roduction6
urbaniationetc)
$ istance(administration and ta3ation6institutions6
infrastructure6 ser#ices etc)
$ "3canges(economic integration6 factor
mobility etc)$ +ulture(institutions and la6 tacit
!noledge6 social netor!s etc)
