DP4505 Does Staying out of the European Integration Process Shelter the Industrial Base of Small Countries?
|Publication Date:||July 2004|
|Keyword(s):||agglomeration, economic integration, multiregion-model|
|JEL(s):||F12, F15, F21, R12|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=4505|
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.