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Industry Concentration Patterns in the European Union: Does the East Mirror the West?


Author Info

  • Marie-Line Duboz

    (Université de Franche-Comté, Université de Bourgogne)

  • Rachel Guillain

    (Université de Franche-Comté, Université de Bourgogne)

  • Julie Le Gallo

    (Université de Franche-Comté, Université de Bourgogne)


This article analyses the changes in industry concentration in the European Union (EU) using two regional samples: the EU-15 for the period 1980-2004 and the Central/Eastern European Countries (CEECs) for the period 1990-2004. We compute Brülhart and Traegers entropy index (2005) for agriculture, manufacturing, and services. To assess the statistical significance of the differences between sub-periods, we use a block-bootstrap procedure. Our results show a change in industry concentration patterns in the EU-15 and the CEECs, corroborating the findings of economic-geography models, namely, that the decline in transaction costs alters economic concentration patterns. However, those findings also show that an initial concentration phase is followed by a second phase characterised by redispersion at high levels of economic integration. Our results do not confirm that theoretical conclusion. Moreover, our results reveal that, while concentration patterns are changing, they are not converging between Western and Eastern European countries.

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Bibliographic Info

Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

Volume (Year): 423 (2009)
Issue (Month): (December)
Pages: 59-76

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Handle: RePEc:crs:ecosta:es423c

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Keywords: Economic-geography Models; European Union; Industry Concentration;

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  1. Pierre-Philippe Combes & Henry Overman, 2003. "The Spatial Distribution of Economic Activities in the European Union," CEP Discussion Papers dp0587, Centre for Economic Performance, LSE.
  2. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier.
  3. Guy Dumais & Glenn Ellison & Edward L Glaeser, 1998. "Geographic Concentration as a Dynamic Process," Working Papers 98-3, Center for Economic Studies, U.S. Census Bureau.
  4. Brulhart, Marius & Traeger, Rolf, 2005. "An account of geographic concentration patterns in Europe," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 35(6), pages 597-624, November.
  5. Russell Davidson & Emmanuel Flachaire, 2004. "Asymptotic and bootstrap inference for inequality and poverty measures," Cahiers de la Maison des Sciences Economiques, Université Panthéon-Sorbonne (Paris 1) v04100, Université Panthéon-Sorbonne (Paris 1).
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  7. Karine Daniel, 2003. "Concentration et spécialisation : quel schéma pour l’agriculture communautaire ?," Économie et Prévision, Programme National Persée, Programme National Persée, vol. 158(2), pages 105-120.
  8. Fujita, Masahisa & Thisse, Jacques-Francois, 2004. "Globalization and the Evolution of the Supply Chain: who gains and who loses?," IDE Discussion Papers, Institute of Developing Economies, Japan External Trade Organization(JETRO) 5, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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  12. Luisito Bertinelli & Jehan Decrop, 2005. "Geographical agglomeration: Ellison and Glaeser's index applied to the case of Belgian manufacturing industry," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(5), pages 567-583.
  13. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2008. "Le rôle des marchés locaux du travail dans la concentration spatiale des activités économiques," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 141-177.
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