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...Economic geography and the fiscal effects of regional integration rodney d ludema department economics georgetown university washington dc usa ian wooton centre for policy research glasgow goswell road g rt uk london ecv db abstract in models plant level scale economies trade costs create incentives spatial agglomeration production into a manufacturing core agricultural periphery creating income differentials we examine tax competition between national governments to influence location activity labour is imperfectly mobile impose redistributive taxes modeled as either increased mobility or lower show that type may result decrease intensity thus higher equilibrium moreover must increase when forces are strongest keywords factor international jel codes f h january introduction two related issues arise frequently discussions one erosion autonomy countries experience leads more base other possibility leading with divergent structures incomes across integrating former issue touches upon an ...