Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2000:6: The Theory of New Economic Geography and Industrial Location in SADC

Lennart Petersson ()
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Lennart Petersson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden

Abstract: This paper evaluates the new theories of trade and economic geography in the light of the pattern of regional specialisation in Southern Africa. The analysis is applied to the nine South African provinces and the SADC member countries of 1995, except Angola. Based on Gini coefficients, the regional specialisation of provinces and countries and dispersion/concentration of manufacturing employment are revealed, reflecting the outcomes of import substitution, the export-oriented policy of Mauritius and, finally, the trade liberalisation within the Southern African Customs Union (SACU). Industry location and centrality of regions are analysed, and the findings indicate that industries subject to internal and external scale economies are geographically concentrated in regions with large home markets, while access to nearby regional markets appears to be of minor importance.

Keywords: economic geography; industrial location; market integration; specialisation

JEL-codes: F12; R12

23 pages, September 25, 2000

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