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The Theory of New Economic Geography and Industrial Location in SADC

  • Petersson, Lennart

    ()

    (Department of Economics, Lund University)

Registered author(s):

    This paper evaluates the new theories of trade and economic geography in the light of the pattern of regional specialisation in Southern Africa. The analysis is applied to the nine South African provinces and the SADC member countries of 1995, except Angola. Based on Gini coefficients, the regional specialisation of provinces and countries and dispersion/concentration of manufacturing employment are revealed, reflecting the outcomes of import substitution, the export-oriented policy of Mauritius and, finally, the trade liberalisation within the Southern African Customs Union (SACU). Industry location and centrality of regions are analysed, and the findings indicate that industries subject to internal and external scale economies are geographically concentrated in regions with large home markets, while access to nearby regional markets appears to be of minor importance.

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    Paper provided by Lund University, Department of Economics in its series Working Papers with number 2000:6.

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    Length: 23 pages
    Date of creation: 25 Sep 2000
    Date of revision:
    Publication status: Published in South African Journal of Economics, 2002, pages 1222-1246.
    Handle: RePEc:hhs:lunewp:2000_006
    Contact details of provider: Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
    Phone: +46 +46 222 0000
    Fax: +46 +46 2224613
    Web page: http://www.nek.lu.se/en

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    1. Venables, Anthony J, 1998. "The Assessment: Trade and Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 1-6, Summer.
    2. Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 45-53, Summer.
    3. Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," The World Economy, Wiley Blackwell, vol. 21(6), pages 707-731, 08.
    4. Marius Brülhart, 1998. "Trading Places: Industrial Specialization in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 36(3), pages 319-346, 09.
    5. Venables, Anthony J., 1999. "Regional integration agreements - a force for convergence or divergence?," Policy Research Working Paper Series 2260, The World Bank.
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