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Trends in European Manufacturing Location: Country versus Region

Author

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  • Eleonora CUTRINI

    (Universit… Politecnica delle Marche, Dipartimento di Economia)

Abstract

The purpose of this paper is to investigate whether and to what extent European manufacturing location has been driven by regional localisation or national comparative advantages during the period 1985-2001. To this end, the relative concentration pattern of each industry is disentangled into within and between country components. The original methodology adopted is based on the use of the Theil dissimilarity entropy index allowing to handle two geographical levels of analysis. The evidence suggests that the agglomeration of manufacturing industries is more likely to find expression between the internal regions of each country rather than across countries. Counterintuitively, after the completion of the Single European Market the relevance of national border remains stable or even increase in the localisation of the majority of the sectors considered.

Suggested Citation

  • Eleonora CUTRINI, 2005. "Trends in European Manufacturing Location: Country versus Region," Working Papers 247, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:247
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    File URL: http://docs.dises.univpm.it/web/quaderni/pdf/247.pdf
    File Function: First version, 2005
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    References listed on IDEAS

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    1. Elisenda Paluzie & Jordi Pons & Daniel Tirado, 2001. "Regional Integration and Specialization Patterns in Spain," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 285-296.
    2. Karl Aiginger & Michael Pfaffermayr, 2004. "The Single Market and Geographic Concentration in Europe," Review of International Economics, Wiley Blackwell, vol. 12(1), pages 1-11, February.
    3. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
    4. Crozet, Matthieu & Koenig Soubeyran, Pamina, 2004. "EU enlargement and the internal geography of countries," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 265-279, June.
    5. Monfort, Philippe & Nicolini, Rosella, 2000. "Regional Convergence and International Integration," Journal of Urban Economics, Elsevier, vol. 48(2), pages 286-306, September.
    6. Haaland, J.I. & Kind, H.J. & knarvik, K.H.M. & Torstensson, J., 1998. "What Determines the Economic Geography of Europe?," Papers 19/98, Norwegian School of Economics and Business Administration-.
    7. Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 135(4), pages 573-593, December.
    8. Elisenda Paluzie, 2001. "articles: Trade policy and regional inequalities," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(1), pages 67-85.
    9. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 2008 - 2015 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    Cited by:

    1. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.

    More about this item

    Keywords

    Theil dissimilarity entropy index; comparative advantages; european economic integration; european internal geography; relative concentration;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • 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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