The Geography of Multi-Speed Europe
AbstractThis paper describes the possible impact of multi-speed integration on the location of economic activities in Europe. We present a model where two countries integrate their economies and leave a third temporarily outside because of its lower income. We analyse the effect of different integration sequences on industrial location and convergence during the transition period and in the long term, with and without agglomeration economies. Without agglomeration economies, income differentials at the time of integration are the main determinant of industry location. A long transition period may then be called for to avert concentration in the core countries. On the contrary, with migration the temporary exclusion of the poor country may trigger agglomeration in the rich integrated core.
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Bibliographic InfoPaper provided by Sciences Po in its series Sciences Po publications with number DP1292.
Date of creation: Nov 1995
Date of revision:
Agglomeration; Convergence; Location; Multi-Speed Integration;
Other versions of this item:
- Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1995. "The Geography of Multi-Speed Europe," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1292, C.E.P.R. Discussion Papers.
- Philippe Martin & Gianmarco Ottaviano, 1995. "The Geography of Multi-Speed Europe," Working Papers 1995-10, CEPII research center.
- F15 - International Economics - - Trade - - - Economic Integration
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- 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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