Is insularity a locational disadvantage? Insights from the New Economic Geography

TitleIs insularity a locational disadvantage? Insights from the New Economic Geography
Publication TypeWorking Paper
Year of Publication2015
AuthorsF. Cerina
Number2015_21
KeywordsIndustry Location, Insularity, New Economic Geography, trade
Abstract

This paper investigates the economic implications of being an island from the perspective of the New Economic Geography (NEG) literature. We review and discuss some existing NEG models which can be useful to generate empirical predictions for the insular territories and we outline a theoretical framework aiming at explicitly modeling the problem of insularity. We propose answers to the following research questions: Is insularity a threat for economic performances? In which cases and why does it represent a disadvantage? Which are, if any, the optimal policies able to compensate for this disadvantage?

Citation Key6554
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