Research Papers in Economics, Department of Economics, Stockholm University
Does a Wait and See Approach to European Integration Shelter the Industrial Base of Small Countries?
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 adopting a wait and see
strategy. Theoretical results, derived from a three-region new economic
geography model, are compared to stylised facts on European manufacturing
production. The result is that further integration could strengthen the
industrial base of small countries that go ahead with integration.
Keywords: Agglomeration; economic integration; multiregion-model; (follow links to similar papers)
JEL-Codes: F12; F15; F21; R12; (follow links to similar papers)
16 pages, March 22, 2004
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