This dissertation studies the effects of external integration and internal liberalization on the economic geography within a country when regions within the country have different access to the world market. The first paper introduces internal geography into the Melitz (2003) model to examine how external and internal liberalizations affect the economic geography within a country. By dividing a country into a coastal region and an inland region, the model shows that trade leads the coastal region have a higher than proportional share of industry, and causes firms in the coastal region to be larger and more productive than firms in the inland region. Both external and internal liberalizations encourage industry agglomeration in the coastal region. However, external trade liberalization leads to firm divergence, and internal liberalization leads to firm convergence, between coastal and inland regions. This allows me to test the relative importance of internal and external liberalization. Using Chinese data from 1998 to 2007, I find that the manufacturing sector grew faster in the coastal region than in the inland region after the WTO accession in 2001. Firms also converged between coastal and inland regions, indicating that internal liberalization had stronger effects during this period. In the second paper, I document large economic discontinuities across the east/non-east provincial borders in China and argue that the border effects are largely due to preferential policies that give the east advantages in international trade and economic development. Using counties contiguous to the borders of 4 plain provinces, I find that manufacturing activities (output, employment, and export) increase abruptly from the west to the east of the borders. The counties in the east also have a lower share of agricultural population and a higher share of output by foreign firms. The economic discontinuities are larger for non-state sectors than for the state sector and are stronger in non-mountain regions than in mountain regions. The large economic discontinuities are unlikely to be explained by geographic and cultural differences across the borders, and can be accounted for by the policy differences between east and non-east provinces. I find that the openness level and the index of market liberalization can account for a large part of the east/non-east divide. In the third paper, I use the ending of the Multi-fiber Arrangement (MFA) to study the effects of an external trade liberalization on Chinese textile and clothing industry. After the Multi-fiber Arrangement ended in 2005, Chinese textile and clothing exports in products that faced quotas before experienced significant boom. The effects are stronger in the coastal region than in the inland region. Using distance to the seaport as a measure of world-market access, I show that the external trade liberalization (the quota removal) had larger effects on regions with better access to the world market. A further analysis of firm entry shows that the large adjustment of export after the expiration of the MFA was largely due to destination and product expansions by existing firms.

Master of Science / Department of Apparel, Textiles, and Interior Design / Joy Kozar / This study examines colonization, development, and globalization in the Commonwealth of the Northern Mariana Islands (CNMI) with respect to the garment industry, the main industry of the islands. A broad-reaching analysis examined population, gender, economic factors, and import/export data in order to explore the repercussions of garment industry development and subsequent decline on the CNMI. A quantitative analysis was conducted utilizing data from the United States Census Bureau, the CNMI's Department of Commerce, and the U.S. Department of Commerce Office of Textiles and Apparel. This research illustrates how the effects of the garment industry in small developing nations are dramatically impacted by a trade arrangement, the Multi-Fiber Arrangement (MFA), which was a protectionist measure used to restrict manufacturing of certain product through a quota system. In addition, this study reveals the economic implications and societal outcomes for the CNMI after the collapse of the garment industry as a result of the 2005 MFA phase-out. Garment production orders shifted to large producer nations once quota restrictions were no longer in place. Factory closures, lost business revenue, and a loss of manufacturing positions affecting predominantly women plagued the CNMI as well as cost-of-living increases. Federalization of the CNMI took place in 2009 which further complicated the islands’ politics and guest worker population status. Tourism is now the CNMI's chief industry although its growth is dismal and heavily reliant upon world economies. A comparison between Mauritius, another small island nation, concludes the discussion with insight on women's development and future considerations for economic growth as a means of development and dependency in the CNMI.