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

Rikard Forslid

No 4505, CEPR Discussion Papers from Centre for Economic Policy Research

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.

Keywords: Agglomeration; Economic integration; Multiregion-model (search for similar items in EconPapers)
JEL-codes: F12 F15 F21 R12 (search for similar items in EconPapers)
Date: 2004-07
New Economics Papers: this item is included in nep-geo
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