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The Geography of Multi-Speed Europe


  • Philippe Martin
  • Gianmarco Ottaviano


This 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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Suggested Citation

  • Philippe Martin & Gianmarco Ottaviano, 1995. "The Geography of Multi-Speed Europe," Working Papers 1995-10, CEPII research center.
  • Handle: RePEc:cii:cepidt:1995-10

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    References listed on IDEAS

    1. Bertola, Giuseppe, 1992. "Models of Economic Integration and Localized Growth," CEPR Discussion Papers 651, C.E.P.R. Discussion Papers.
    2. Barry Eichengreen & Jeffry Frieden, 1993. "The Political Economy Of European Monetary Unification: An Analytical Introduction," Economics and Politics, Wiley Blackwell, vol. 5(2), pages 85-104, July.
    3. Paul Krugman, 1991. "History versus Expectations," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 651-667.
    4. Eichengreen, Barry, 1993. "European Monetary Unification," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1321-1357, September.
    5. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    6. Gasiorek, Michael, 1994. "Factor mobility, trade liberalisation," Discussion Papers in Economics 08/94, Department of Economics, University of Sussex.
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    Cited by:

    1. Pisani-Ferry, Jean, 1998. "Dealing with Diversity: The Challenges for Europe," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt0rt391sf, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    2. Philippe Martin & Claude Jessua, 1996. "L'importance des exclus de l'intégration monétaire en Europe," Revue Économique, Programme National Persée, vol. 47(3), pages 807-817.
    3. Martin, Philippe, 1996. "A sequential approach to regional integration: The European Union and Central and Eastern Europe," European Journal of Political Economy, Elsevier, vol. 12(4), pages 581-598, December.
    4. Jean Pisani-Ferry, 1995. "L'Europe à géométrie variable, une analyse économique," Working Papers 1995-04, CEPII research center.

    More about this item


    european integration; growth; International comparison;

    JEL classification:

    • N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries


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