Scandinavian Working Papers in Economics
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Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2004:2:
Does a Wait and See Approach to European Integration Shelter the Industrial Base of Small Countries?

Rikard Forslid ()

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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