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Trends and Determinants of the Geographic Dispersion of Irish Manufacturing Activity, 1926- 1996

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  • Eric Strobl

Abstract

Strobl E. (2004) Trends and determinants of the geographic dispersion of Irish manufacturing activity, 1926-1996, Reg. Studies 38, 191-205. This paper documents the trends in localization of the Irish manufacturing sector since the 1920s and investigates which of three prominent models is most consistent with the data. We find that aggregate manufacturing activity experienced an inverted u-shaped pattern of localization and is now more dispersed than it was in the 1920s. Our analysis of individual sub-sectors shows that, while this long-term trend holds for many of these, there is a considerable amount of heterogeneity in the extent and the evolution of their geographic dispersion. An econometric analysis of a panel of sub-sectors reveals that there is support for old and new trade theories, as well as economic geography models, in explaining location of the more modern manufacturing industries over the long run. For the more recent period since 1972 we find evidence consistent with new economic geography models for all manufacturing industries, while external economies arising from spillovers through foreign direct investment have acted to disperse modern manufacturing activities.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 38 (2004)
Issue (Month): 2 ()
Pages: 191-205

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Handle: RePEc:taf:regstd:v:38:y:2004:i:2:p:191-205

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Related research

Keywords: Geographic concentration; Ireland; Concentration geographique; Irlande; Geographische Konzentration; Irland; Concentracion geografica; Irlanda;

References

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  1. J. Peter Neary, 2000. "Of Hype and Hyperbolas - Introducing the new Economic Geography," Working Papers 200019, School Of Economics, University College Dublin.
  2. Gorg, Holger & Strobl, Eric, 2002. "Multinational companies and indigenous development: An empirical analysis," European Economic Review, Elsevier, vol. 46(7), pages 1305-1322, July.
  3. Hanson, Gordon H, 1998. "North American Economic Integration and Industry Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 30-44, Summer.
  4. Puga, Diego, 1997. "The Rise and Fall of Regional Inequalities," CEPR Discussion Papers 1575, C.E.P.R. Discussion Papers.
  5. Brülhart, Marius & Trionfetti, Federico, 1998. "Industrial Specialisation and Public Procurement: Theory and Empirical Evidence," Economics Technical Papers 983, Trinity College Dublin, Department of Economics.
  6. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  7. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September.
  8. Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
  9. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-39, November.
  10. Aidan Meyler & Eric Strobl, 2000. "Job Generation and Regional Industrial Policy in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 111-128.
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