Working Paper: CEPR ID: DP4505
Authors: 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 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
JEL Codes: F12; F15; F21; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Participation in economic integration (F15) | Strengthening of the industrial base (O25) |