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What Determines the Economic Geography of Europe?

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Author Info

  • Haaland, J.I.
  • Kind, H.J.
  • knarvik, K.H.M.
  • Torstensson, J.

Abstract

This paper focuses on what the driving forces behind industry localisation in Europe are. Based on traditional as well as new trade theory and new economic geography our cross-sectoral empirical analysis seeks to explain the pattern of relative and absolute concentration of manufacturing activity. By comparing impact over time, we also consider whether the single market has had an influence on factors determining localisation. The results indicate that the by far most important determinant of economic geography in Europe is localisation of demand. There is also evidence of cumulative causation in the sense that absolute concentration of production and expenditure mutually influence each other.

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Bibliographic Info

Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 19/98.

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Length: 33 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:norgee:19/98

Contact details of provider:
Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
Email:
Web page: http://www.nhh.no/
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Keywords: ECONOMETRICS ; ECONOMIC INTEGRATION ; INTERNATIONAL TRADE;

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