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Trends and Determinants of the Geographic Dispersion of Irish Manufacturing Activity, 1926- 1996

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  • Eric Strobl

Abstract

Strobl E. (2004) Trends and determinants of the geographic dispersion of Irish manufacturing activity, 1926-1996, Reg. Studies 38, 191-205. This paper documents the trends in localization of the Irish manufacturing sector since the 1920s and investigates which of three prominent models is most consistent with the data. We find that aggregate manufacturing activity experienced an inverted u-shaped pattern of localization and is now more dispersed than it was in the 1920s. Our analysis of individual sub-sectors shows that, while this long-term trend holds for many of these, there is a considerable amount of heterogeneity in the extent and the evolution of their geographic dispersion. An econometric analysis of a panel of sub-sectors reveals that there is support for old and new trade theories, as well as economic geography models, in explaining location of the more modern manufacturing industries over the long run. For the more recent period since 1972 we find evidence consistent with new economic geography models for all manufacturing industries, while external economies arising from spillovers through foreign direct investment have acted to disperse modern manufacturing activities.

Suggested Citation

  • Eric Strobl, 2004. "Trends and Determinants of the Geographic Dispersion of Irish Manufacturing Activity, 1926- 1996," Regional Studies, Taylor & Francis Journals, vol. 38(2), pages 191-205.
  • Handle: RePEc:taf:regstd:v:38:y:2004:i:2:p:191-205
    DOI: 10.1080/0034340042000190163
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    References listed on IDEAS

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    1. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-339, November.
    2. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
    3. repec:wsi:wschap:9789814749237_0017 is not listed on IDEAS
    4. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September.
    5. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
    6. Hanson, Gordon H, 1998. "North American Economic Integration and Industry Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 30-44, Summer.
    7. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    8. Holger Görg & Eric Strobl, 2016. "Multinational companies and indigenous development: An empirical analysis," World Scientific Book Chapters,in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 17, pages 305-322 World Scientific Publishing Co. Pte. Ltd..
    9. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    10. Brülhart, Marius & Trionfetti, Federico, 2001. "Industrial Specialisation and Public Procurement: Theory and Empirical Evidence," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 106-127.
    11. Aidan Meyler & Eric Strobl, 2000. "Job Generation and Regional Industrial Policy in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 111-128.
    12. Wyn P. Grant (ed.), 1995. "Industrial Policy," Books, Edward Elgar Publishing, number 480, June.
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