Trading Borders: the importance of interregional integration and economy size for the impact of secession

Gioele Figus; Peter McGregor; Stuart McIntyre; Graeme Roy

doi:10.1080/00343404.2025.2461756

Trading Borders: the importance of interregional integration and economy size for the impact of secession

Gioele Figus^*
, Peter McGregor
, Stuart McIntyre
, Graeme Roy

^*Corresponding author for this work

Economics

Research output: Contribution to journal › Article › peer-review

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Abstract

This paper analyses the impact of secession on the ‘seceding’ and ‘successor’ regions. A two-regions computable general equilibrium model is initially calibrated to a set of synthetic datasets where the regions only differ in relative size and trade integration. Using the case of two identical regions as a benchmark we show how relative size and trade integration determine the relative impact on both regions. This framework is used to explore three European case studies, the UK, Spain and Italy, demonstrating how, although always detrimental for both regions, trade integration and relative size explain the economic impacts of new trade borders.

Original language	English
Article number	2461756
Pages (from-to)	1-16
Number of pages	16
Journal	Regional Studies
Volume	59
Issue number	1
Early online date	13 Mar 2025
DOIs	https://doi.org/10.1080/00343404.2025.2461756
Publication status	Published - 13 Mar 2025

Funding

Gioele Figus, Peter McGregor and Graeme Roy acknowledge funding from the UK Economic and Social Research Council (ESRC), Centre for Inclusive Trade Policy [grant reference number ES/W002434/1]. The authors are grateful for the helpful comments of two anonymous referees and an associate editor.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities

Keywords

secession
seceding
borders
international trade
regional trade
trade costs

Access to Document

10.1080/00343404.2025.2461756Licence: CC BY 4.0

Figus-etal-RS-2025-Trading-Borders-the-importance-of-interregional-integration-andFinal published version, 1.29 MBLicence: CC BY 4.0

Cite this

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title = "Trading Borders: the importance of interregional integration and economy size for the impact of secession",

abstract = "This paper analyses the impact of secession on the {\textquoteleft}seceding{\textquoteright} and {\textquoteleft}successor{\textquoteright} regions. A two-regions computable general equilibrium model is initially calibrated to a set of synthetic datasets where the regions only differ in relative size and trade integration. Using the case of two identical regions as a benchmark we show how relative size and trade integration determine the relative impact on both regions. This framework is used to explore three European case studies, the UK, Spain and Italy, demonstrating how, although always detrimental for both regions, trade integration and relative size explain the economic impacts of new trade borders.",

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KW - trade costs

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Trading Borders: the importance of interregional integration and economy size for the impact of secession

Abstract

Funding

UN SDGs

Keywords

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Centre for Inclusive Trade Policy (CITP)

Cite this

Trading Borders: the importance of interregional integration and economy size for the impact of secession

Abstract

Funding

UN SDGs

Keywords

Access to Document

Other files and links

Fingerprint

Projects

Centre for Inclusive Trade Policy (CITP)

Cite this