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GTAP Resource #6835

"Trading Borders: the importance of interregional integration and size of economies for the impact of secession"
Authors: Figus, Gioele, Peter McGregor, Stuart McIntyre and Graeme Roy


Abstract
This paper analyses the impact of secession on the “seceding” and “successor” regions. A two-region computable general equilibrium model is initially calibrated to a set of synthetically generated sets of Social Accounting Matrices where the seceding and successor regions only differ in terms of their relative size and degree of trade integration. By introducing an illustrative cost in inter-regional trade these models allow us to identify a set of simplified cases including one where the two regions are completely identical and symmetric. We then use this framework to explore three European case studies: the UK, Spain and Italy and demonstrate how, albeit always detrimental for both regions, trade integration and relative size contribute to explain the economic impacts of introducing new borders on the seceding and successor regions.


Resource Details () GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Version:
Created: Figus, G. (4/11/2023)
Updated: Figus, G. (4/11/2023)
Visits: 536
- Non-Tariff barriers
- Europe (Northern)


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Last Modified: 4/30/2026 12:56:16 PM