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Does Staying out of the European Integration Process Shelter the Industrial Base of Small Countries?

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  • Forslid, Rikard

Abstract

This Paper compares the effect of economic integration on industry location for a small country that goes ahead with an integration process, such as the European, and a country that stays out. Theoretical results, derived from a three-region new economic geography model, are compared to stylized facts on European manufacturing production. These are consistent with a scenario where further integration strengthens the industrial base of small countries that go ahead with integration.

Suggested Citation

  • Forslid, Rikard, 2004. "Does Staying out of the European Integration Process Shelter the Industrial Base of Small Countries?," CEPR Discussion Papers 4505, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4505
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    More about this item

    Keywords

    agglomeration; economic integration; multiregion-model;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • 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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