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

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.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 38 (2004)
Issue (Month): 2 ()
Pages: 191-205

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Handle: RePEc:taf:regstd:v:38:y:2004:i:2:p:191-205
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  1. Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
  2. Brülhart, Marius & Trionfetti, Federico, 1998. "Industrial Specialisation and Public Procurement: Theory and Empirical Evidence," Economics Technical Papers 983, Trinity College Dublin, Department of Economics.
  3. 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.
  4. Michael Devereux & Rachel Griffith & Helen Simpson, 1999. "The geographic distribution of production activity in the UK," IFS Working Papers W99/26, Institute for Fiscal Studies.
  5. 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.
  6. 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 321-39, November.
  7. Diego Puga, 1996. "The rise and fall of regional inequalities," LSE Research Online Documents on Economics 20643, London School of Economics and Political Science, LSE Library.
  8. Görg, Holger & Strobl, Eric, 2002. "Multinational Companies and Indigenous Development: An Empirical Analysis," CEPR Discussion Papers 3325, C.E.P.R. Discussion Papers.
  9. 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.
  10. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
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