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Economic integration and industry location in transition countries

  • Resmini, Laura

Recent developments in international trade theory predict that increased globalization will be associated with increased locational concentration of economic activities, and hence increased specialisation of national and regional economies. Relative little empirical evidence exists on whether these predictions are correct, mainly as far as Central and Eastern Europe is concerned. This paper aims at analysing the integration-location relationship in four candidate countries during the 1990s. It demonstrates that the economic integration with the EU has changed industry re-location processes within candidate countries, bringing to a spatial organisation of manufacturing productions less inwardoriented and more evenly distributed across regions than it was at the beginning of the transition process.

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Paper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 10-2004.

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Date of creation: 2004
Date of revision:
Handle: RePEc:zbw:zeiwps:b102004
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  1. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
  2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  3. Gordon H. Hanson, 1994. "Regional Adjustment to Trade Liberalization," NBER Working Papers 4713, National Bureau of Economic Research, Inc.
  4. Dwivedi, T. D. & Srivastava, V. K., 1978. "Optimality of least squares in the seemingly unrelated regression equation model," Journal of Econometrics, Elsevier, vol. 7(3), pages 391-395, April.
  5. Yuko Kinoshita & Nauro F. Campos, 2003. "Why Does Fdi Go Where It Goes? New Evidence From The Transition Economies," William Davidson Institute Working Papers Series 2003-573, William Davidson Institute at the University of Michigan.
  6. Laura Resmini, 1999. "The Determinants of Foreign Direct Investment into the CEECs: New Evidence from Sectoral Patterns," LICOS Discussion Papers 8399, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  7. Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.
  8. Krugman, Paul, 1995. "Increasing returns, imperfect competition and the positive theory of international trade," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 24, pages 1243-1277 Elsevier.
  9. Driffield, Nigel, 1999. "Indirect Employment Effects of Foreign Direct Investment into the UK," Bulletin of Economic Research, Wiley Blackwell, vol. 51(3), pages 207-21, July.
  10. Rodriguez-Clare, Andres, 1996. "Multinationals, Linkages, and Economic Development," American Economic Review, American Economic Association, vol. 86(4), pages 852-73, September.
  11. Ottaviano, Gianmarco I. P., 2002. "Regional policy in the global economy : insights from new economic geography," HWWA Discussion Papers 211, Hamburg Institute of International Economics (HWWA).
  12. Krugman, Paul & Venables, Anthony J, 1990. "Integration and the Competitiveness of Peripheral Industry," CEPR Discussion Papers 363, C.E.P.R. Discussion Papers.
  13. Hanson, Gordon H., 1996. "Economic integration, intraindustry trade, and frontier regions," European Economic Review, Elsevier, vol. 40(3-5), pages 941-949, April.
  14. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.
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