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The Single Market and Geographic Concentration in Europe

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Author Info
Karl Aiginger
Michael Pfaffermayr

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Abstract

The stylized fact that regional concentration is lower in Europe than in the USA has led to the prediction that the creation of the Single Market might increase spatial concentration in Europe. This has raised some fears that the social and political burden of rapid change might counterbalance the economic gains, that the core might win to the detriment of the periphery, and that concentration of industry might make countries more vulnerable to asymmetric shocks in the Monetary Union. This paper uses a new disaggregated dataset to substantiate whether spatial concentration increased during the 1990s. Most other studies have not extended beyond the early 1990s or have used less comprehensive and detailed datasets. The main result is that geographic concentration did not increase, but rather decreased during the 1990s. Industrial patterns of geographic concentration and its dynamics partly conformed to the hypotheses provided by economic geography, trade theory, and industrial organization. Copyright Blackwell Publishing Ltd 2004.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9396.2004.00427.x/enhancedabs
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 12 (2004)
Issue (Month): 1 (02)
Pages: 1-11
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Handle: RePEc:bla:reviec:v:12:y:2004:i:1:p:1-11

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  1. Frances Ruane & Xiaoheng Zhang, 2007. "Where do MNEs Expand Production: Location Choices of the Pharmaceutical Industry in Europe after 1992," Papers WP211, Economic and Social Research Institute (ESRI). [Downloadable!]
  2. Jens Suedekum, 2006. "Concentration and Specialization Trends in Germany since Re-unification," Regional Studies, Taylor and Francis Journals, vol. 40(8), pages 861-873, November. [Downloadable!] (restricted)
  3. Karl Aiginger & Stephen W. Davies, 2004. "Industrial specialisation and geographic concentration: Two sides of the same coin? Not for the European Union," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 231-248, November. [Downloadable!]
  4. Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS. [Downloadable!]
  5. Marius Brülhart, & Rolf Traeger, 2003. "An Account of Geographic Concentration Patterns in Europe," The Institute for International Integration Studies Discussion Paper Series iiisdp02, IIIS. [Downloadable!]
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  6. George Petrakos & Georgios Fotopoulos & Dimitrios Kallioras, 2006. "Peripherality and Integration: Industrial Growth and Decline in the Greek Regions," ERSA conference papers ersa06p133, European Regional Science Association. [Downloadable!]
  7. Eleonora Cutrini, 2005. "The Balassa Index meets the Theil Index - a Decomposition Methodology for Location Studies," ERSA conference papers ersa05p123, European Regional Science Association. [Downloadable!]
  8. Sergio Lodde, 2007. "Specialization and Concentration of the Manufacturing Industry in the Italian Local Labor Systems," Working Paper CRENoS 200716, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  9. Annekatrin Niebuhr, 2005. "The Impact of EU Enlargement on European Border Regions," ERSA conference papers ersa05p114, European Regional Science Association. [Downloadable!]
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