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Trade and Economic Geography: The Impact of EEC Accession on the UK

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  • Winters, L Alan
  • Overman, Henry

Abstract

This paper combines establishment level production data with international trade data by port to examine the impact of accession to the EEC on the spatial distribution of UK manufacturing. We use this data to test the predictions from economic geography models of how external trade affects the spatial distribution of employment. Our results suggest that accession changed the country-composition of UK trade and via the port-composition induced an exogenous shock to the economic environment in different locations. In line with theory, we find that better access to export markets and intermediate goods increase employment while increased import competition decreases employment.

Suggested Citation

  • Winters, L Alan & Overman, Henry, 2006. "Trade and Economic Geography: The Impact of EEC Accession on the UK," CEPR Discussion Papers 5574, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:5574
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    12. James R. Tybout, 2001. "Plant- and Firm-Level Evidence on "New" Trade Theories," NBER Working Papers 8418, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Campos, Nauro F., 2019. "B for Brexit: A Survey of the Economics Academic Literature," IZA Discussion Papers 12134, Institute of Labor Economics (IZA).
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    3. Andrei Potlogea & Wenya Cheng, 2017. "Trade Liberalization and Economic Development: Evidence from China's WTO Accession," 2017 Meeting Papers 1648, Society for Economic Dynamics.
    4. Steven Brakman & Harry Garretsen & Charles van Marrewijk & Abdella Oumer, 2011. "The Positive Border Effect of EU Integration," CESifo Working Paper Series 3335, CESifo.
    5. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.

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    More about this item

    Keywords

    Economic geography; Eec; Uk manufacturing;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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