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The Single Market and the Geographical Diversification of Leading Firms in the EU

  • Stephen Pavelin

    (University of Reading)

  • Frank Barry

    (University College Dublin)

Geographical diversification describes the degree to which a firm’s operations in a particular industry are dispersed across countries. This paper presents evidence on the geographical diversification within the EU of the roughly 290 largest manufacturing firms in Europe. We explore how geographical diversification changed over the period when the Single Market came into effect, finding that it increased substantially. We also study the variation across sectors and across EU countries. Ireland – which began its rapid convergence on average EU living standards over this period – emerges as a special case and receives particular attention.

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File URL: http://www.esr.ie/Vol36_1/Vol36__1BarryPavelin.pdf
File Function: First version, 2005
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 36 (2005)
Issue (Month): 1 ()
Pages: 1–17

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Handle: RePEc:eso:journl:v:36:y:2005:i:1:p:1-17
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  1. Barry, F & Bradley, J, 1997. ""FDI and Trade : The Irish Host-Country Experience"," Papers 97/13, College Dublin, Department of Political Economy-.
  2. repec:ner:tilbur:urn:nbn:nl:ui:12-155108 is not listed on IDEAS
  3. James R. Markusen, 1998. "Multinational Firms, Location and Trade," The World Economy, Wiley Blackwell, vol. 21(6), pages 733-756, 08.
  4. J. Peter Neary, 2001. "Foreign Direct Investment and the Single Market," Development Working Papers 160, Centro Studi Luca d\'Agliano, University of Milano.
  5. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, June.
  6. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  7. Huizinga, Harry, 1990. "Unions, taxes and the structure of multinational enterprises," Economics Letters, Elsevier, vol. 34(1), pages 73-75, September.
  8. Frank Barry & John Bradley & Aoife Hannan, 2001. "The Single Market, the Structural Funds and Ireland's Recent Economic Growth," Journal of Common Market Studies, Wiley Blackwell, vol. 39(3), pages 537-552, 09.
  9. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 169-189, Spring.
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