Discussion Paper Details

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Title: Trade and Economic Geography: The Impact of EEC Accession on the UK

Author(s): Henry G Overman and L. Alan Winters

Publication Date: March 2006

Keyword(s): economic geography, EEC and UK manufacturing

Programme Area(s): International Trade and Regional Economics

Abstract: This paper combines establishment level production data with international trade data by port to examine the impact of accession to the EEC on the spatial distribution of UK manufacturing. We use this data to test the predictions from economic geography models of how external trade affects the spatial distribution of employment. Our results suggest that accession changed the country-composition of UK trade and via the port-composition induced an exogenous shock to the economic environment in different locations. In line with theory, we find that better access to export markets and intermediate goods increase employment while increased import competition decreases employment.

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Bibliographic Reference

Overman, H and Winters, L. 2006. 'Trade and Economic Geography: The Impact of EEC Accession on the UK'. London, Centre for Economic Policy Research.