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Does Staying out of the European Integration Process Shelter the Industrial Base of Small Countries?

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Author Info
Forslid, Rikard
Abstract

This Paper compares the effect of economic integration on industry location for a small country that goes ahead with an integration process, such as the European, and a country that stays out. Theoretical results, derived from a three-region new economic geography model, are compared to stylized facts on European manufacturing production. These are consistent with a scenario where further integration strengthens the industrial base of small countries that go ahead with integration.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4505.

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Date of creation: Jul 2004
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Handle: RePEc:cpr:ceprdp:4505

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Related research
Keywords: agglomeration; economic integration; multiregion-model;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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This page was last updated on 2009-11-25.

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