An application of the Helpman (1998) model to the Oresund-region

Abstract: This paper investigates the effect of the reduction of transport cost Oresundsbron has caused between the two subregions of the Oresund-region. The paper utilizes the the Helpman (1998) model and the procedure used by Hanson (2005) for estimating this equation. The paperbrings a clear inside into the method and thus provides an excellent start-ing position.