Conclusion of internal trade
Answers
Answer:
Details how trade integration has affected regions within countries; how the characteristics of a region affect the trade competitiveness of firms located there; and how effectively traditional regional policy has addressed thechallenges that trade brings to lagging regions. Developing countries experience divergence resulting from trade openness because of their structural features and significant preexisting spatial inequalities; however, their level of trade openness is low compared to developed countries. Firms located in core regions are more likely to be exporters and importers, and be more competitive despite higher congestion costs. Firm characteristics have the most significant association with export behavior with larger, younger, foreign-owned, and more productive firms being more likely to export, but outside of individual firm characteristics, agglomeration has the strongest effect on exporting. The two case studies suggest that addressing the problem requires designing good policies, and effective implementation over a long period of time; therefore, the governanceand political economy challenges should not be underestimated.