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Discussion Paper Details

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

Author(s): Rikard Forslid

Publication Date: July 2004

Keyword(s): agglomeration, economic integration and multiregion-model

Programme Area(s): International Trade and Regional Economics

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.

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Bibliographic Reference

Forslid, R. 2004. 'Does Staying out of the European Integration Process Shelter the Industrial Base of Small Countries?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4505