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Trade shocks and industrial location: the impact of EEC accession on the UK

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  • Overman, Henry G.
  • Winters, L. Alan

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

  • Overman, Henry G. & Winters, L. Alan, 2006. "Trade shocks and industrial location: the impact of EEC accession on the UK," LSE Research Online Documents on Economics 676, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:676
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    Cited by:

    1. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    2. Miren Lafourcade & Elisenda Paluzie, 2011. "European Integration, Foreign Direct Investment (FDI), and the Geography of French Trade," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 419-439.
    3. Stephen J. Redding & Esteban Rossi-Hansberg, 2017. "Quantitative Spatial Economics," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 21-58, September.
    4. Trejo Nieto , Alejandra Berenice, 2010. "The geographic concentration in Mexican manufacturing industries, an account of patterns, dynamics and explanations: 1988-2003," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 18, pages 37-60.
    5. Miren Lafourcade & Elisenda Paluzie, 2008. "European integration, FDI and the geography of French trade," Working Papers halshs-00586834, HAL.
    6. Stephen J. Redding, 2020. "Trade and Geography," NBER Working Papers 27821, National Bureau of Economic Research, Inc.
    7. Henry Overman & L. Alan Winters, 2004. "The Geography of UK International Trade," CEP Discussion Papers dp0606, Centre for Economic Performance, LSE.
    8. Stephen J. Redding, 2013. "Economic Geography: A Review of the Theoretical and Empirical Literature," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 16, pages 497-531, Palgrave Macmillan.
    9. Mitze, Timo & Breidenbach, Philipp, 2023. "The complex regional effects of macro-institutional shocks: Evidence from EU economic integration over three decades," Ruhr Economic Papers 1007, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. Benjamin Faber, 2007. "Towards the Spatial Patterns of Sectoral Adjustments to Trade Liberalisation: The Case of NAFTA in Mexico," Growth and Change, Wiley Blackwell, vol. 38(4), pages 567-594, December.
    11. Fang, Ling & Kleimann, Martin & Li, Yuan & Schmerer, Hans-Jörg, 2021. "The implications of the New Silk Road Railways on local development," Journal of Asian Economics, Elsevier, vol. 75(C).
    12. Alejandra Trejo, 2011. "Territorial Competitiveness In A Globalised Economy: The Role Of Transport Costs And Liberalisation," ERSA conference papers ersa10p178, European Regional Science Association.
    13. Henry G Overman & L Alan Winters, 2005. "The Port Geography of UK International Trade," Environment and Planning A, , vol. 37(10), pages 1751-1768, October.
    14. Miren Lafourcade & Elisenda Paluzie Hernandez, 2005. "European Integration, FDI and the Internal Geography of Trade: Evidence from Western European Border Regions," Working Papers in Economics 145, Universitat de Barcelona. Espai de Recerca en Economia.
    15. Filipe Lage-De-Sousa, 2006. "Trade Shocks in Brazil: An Investigation of Effects on Regional Manufacturing Wages," ERSA conference papers ersa06p441, European Regional Science Association.
    16. Alejandra Trejo Nieto, 2010. "The aftermath of openness and integration in the Mexican manufacturing," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(1), pages 23-44, February.
    17. Lage de Sousa, Filipe, 2010. "Regional manufacturing wages: dancing to the tune of trade shocks," LSE Research Online Documents on Economics 33500, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Economic geography; EEC; UK manufacturing. JEL classification codes : F15; F14; R12;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • 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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