IDEAS home Printed from https://ideas.repec.org/p/spo/wpmain/infohdl2441-9347.html
   My bibliography  Save this paper

The Geography of Multi-Speed Europe

Author

Listed:
  • Philippe Martin

    (Center for Economic Policy Research (London) (CEPR))

  • 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

    Download full text from publisher

    File URL: https://spire.sciencespo.fr/hdl:/2441/9347/resources/wp95-10.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Bertola, Giuseppe, 1992. "Models of Economic Integration and Localized Growth," CEPR Discussion Papers 651, C.E.P.R. Discussion Papers.
    3. 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.
    4. Paul Krugman, 1991. "History versus Expectations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 651-667.
    5. Eichengreen, Barry, 1993. "European Monetary Unification," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1321-1357, September.
    6. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    7. Gasiorek, Michael, 1994. "Factor mobility, trade liberalisation," Discussion Papers in Economics 08/94, Department of Economics, University of Sussex Business School.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean Pisani-Ferry, 1995. "L'Europe à géométrie variable, une analyse économique," Working Papers 1995-04, CEPII research center.
    2. 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.
    3. repec:hal:spmain:info:hdl:2441/9345 is not listed on IDEAS
    4. 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.
    5. 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.
    6. Olivier Cortès & Sébastien Jean, 1996. "Pays émergents, emploi déficient ?," Working Papers 1996-05, CEPII research center.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:spmain:info:hdl:2441/9347 is not listed on IDEAS
    2. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE.
    3. Picard, Pierre M. & Toulemonde, Eric, 2006. "Firms agglomeration and unions," European Economic Review, Elsevier, vol. 50(3), pages 669-694, April.
    4. Paul Poast, 2013. "Issue linkage and international cooperation: An empirical investigation," Conflict Management and Peace Science, Peace Science Society (International), vol. 30(3), pages 286-303, July.
    5. Akihiko Yanase & Ngo Van Long & Ngo Van Long, 2020. "Trade Costs and Strategic Investment in Infrastructure in a Dynamic Global Economy with Symmetric Countries," CESifo Working Paper Series 8707, CESifo.
    6. Boiscuvier, Éléonore, 2001. "Innovation, intégration et développement régional," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(2), pages 255-280, juin.
    7. Anna Agliari & Pasquale Commendatore & Ilaria Foroni & Ingrid Kubin, 2014. "Expectations and industry location: a discrete time dynamical analysis," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 37(1), pages 3-26, April.
    8. 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.
    9. Christian Volpe Martincus & Antoni Estevadeordal, 2009. "Trade Policy and Specialization," IDB Publications (Working Papers) 9289, Inter-American Development Bank.
    10. S. Brock Blomberg & Jeffry Frieden & Ernesto Stein, 2005. "Sustaining fixed rates: The political economy of currency pegs in Latin America," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 203-225, November.
    11. M. Mar㈠& M. Sarcinelli, 1994. "The European Union: how to assign the functions of government," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 47(191), pages 341-377.
    12. Stéphane Riou, 2003. "Géographie, croissance et politique de cohésion en Europe," Revue Française d'Économie, Programme National Persée, vol. 17(3), pages 171-220.
    13. H.P. Grãœner & C. Hefeker, 1995. "Domestic pressures and the exchange rate regime: why economically bad decisions are politically popular?," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 48(194), pages 331-350.
    14. Olsen Tricia D. & Sinha Aseema, 2013. "Linkage politics and the persistence of national policy autonomy in emerging powers: patents, profits, and patients in the context of TRIPS compliance," Business and Politics, De Gruyter, vol. 15(3), pages 323-356, October.
    15. Hefeker, Carsten, 1995. "The political choice and collapse of fixed exchange rates," Discussion Papers, Series II 277, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    16. Yiming Zhou, 2020. "Urban agglomeration and heterogeneous firms: a synthesis of Helpman and Melitz," Journal of Economics, Springer, vol. 130(3), pages 275-296, August.
    17. Alban Mathieu, 2021. "Frankel and Rose’s Introduction to the Endogeneity of Optimality: A Model Limited to the European Monetary Experience," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 299-314, July.
    18. Lapo Valentina, 2007. "Welfare-maximizing regional government: who benefits from it?," EERC Working Paper Series 07-01e, EERC Research Network, Russia and CIS.
    19. Willem H. Buiter & Clemens Grafe, 2004. "Patching up the Pact," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(1), pages 67-102, March.
    20. Paolo Pasimeni, 2014. "An Optimum Currency Crisis," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(2), pages 173-204, December.
    21. Hans Grüner & Carsten Hefeker, 1996. "Bank cooperation and banking policy in a monetary union: A political-economy perspective on EMU," Open Economies Review, Springer, vol. 7(3), pages 183-198, July.

    More about this item

    Keywords

    Agglomeration; Convergence; Location; Multi-Speed Integration;
    All these keywords.

    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)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spo:wpmain:info:hdl:2441/9347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Spire @ Sciences Po Library (email available below). General contact details of provider: https://edirc.repec.org/data/ecspofr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.