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The Geography of Multi-Speed Europe

Author

Listed:
  • Philippe Martin
  • Gianmarco Ottaviano

    (Università di Bologna)

Abstract

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.

Suggested Citation

  • Philippe Martin & Gianmarco Ottaviano, 1995. "The Geography of Multi-Speed Europe," Sciences Po publications DP1292, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/9347
    as

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    File URL: http://spire.sciencespo.fr/hdl:/2441/9347/resources/wp95-10.pdf
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    References listed on IDEAS

    as
    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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    Citations

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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

    Keywords

    Agglomeration; Convergence; Location; Multi-Speed Integration;

    JEL classification:

    • 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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