Posted Content•
Economic Integration, Specialisation and the Location of Industries. A Survey of the Theoretical Literature
TL;DR: The literature survey as mentioned in this paper gives an insight into theoretically possible impacts of these ongoing processes on industrial structures, the specialisation patterns of EU economies, the location of industrial activities within Europe and the possible emergence of core-periphery patterns.
Abstract: Globalisation and the process of European integration have dramatically changed the competitive environment for European manufacturing. The literature survey gives an insight into theoretically possible impacts of these ongoing processes on industrial structures, the specialisation patterns of EU economies, the location of industrial activities within Europe and the possible emergence of core-periphery patterns.
Citations
More filters
Posted Content•
TL;DR: In this paper, a survey of the optimum currency area (OCA) literature is presented, which is organized into four phases: the "pioneering phase" which put forward the OCA theory and its properties, the "reconciliation phase" when its diverse facets were combined, the ''reassessment phase'' that led to the ''new OCA'' theory, and the ''empirical phase'' during which the theory was subject to due empirical scrutiny.
Abstract: This paper surveys the optimum currency area (OCA) literature. It is organised into four phases: the "pioneering phase" which put forward the OCA theory and its properties, the "reconciliation phase" when its diverse facets were combined, the "reassessment phase" that led to the "new OCA theory", and the "empirical phase" during which the theory was subject to due empirical scrutiny. We make systematic reference to the European economic and monetary union (EMU) to which the OCA theory has been most frequently applied. All pioneering contributions are still relevant. Several early weaknesses have now been amended. Meanwhile, the balance of judgements has shifted in favour of currency unions. They are now deemed to generate fewer costs in terms of the loss of autonomy of domestic macroeconomic policies, and there is greater emphasis on the benefits. Looking ahead we are confronted with two distinct paradigms - specialisation versus "endogeneity of OCA".
424 citations
TL;DR: In this paper, the authors used the entropy index as the indicator of structural change with the neatest aggregation properties to show how this divergence can happen, and applied the methodology to a specific case study: manufacturing in the European Union since 1985.
187 citations
Cites background from "Economic Integration, Specialisatio..."
...For a theoretical survey on determinants of specialisation and concentration see Wolfmayr-Schnitzer (1999). decomposition applies to indicators of relative concentration....
[...]
TL;DR: In this paper, the authors study the prediction of the theory in Rossi-Hansberg (2005) Am Econ Rev 95(5):1464-1491) that, under quite general circum- stances, lower transport costs increase specialization of regions or countries and decrease regional concentration of industries.
Abstract: We study the prediction of the theory in Rossi-Hansberg (Rossi-Hans- berg E (2005) Am Econ Rev 95(5):1464-1491) that, under quite general circum- stances, lower transport costs increase specialization of regions or countries and decrease (regional) concentration of industries. This prediction contradicts the contention of other models and many empirical papers that specialization and concentration should move in parallel. We use two data sets on manufacturing industries across US States and EU member countries to show specialization and concentration do not develop in parallel. The empirical data replicates some of the features of the divergence predicted in the model.
88 citations
Journal Article•
TL;DR: In this article, the authors investigated differences in the regional concentration of manufacturing in the United States and in Europe, using a new data set (value added and employment, comparable number of regions, manufacturing disaggregated into 10 sectors, period 1987-1995/98).
Abstract: Regional Concentration in the United States and Europe: Who Follows Whom? — This paper investigates differences in the regional concentration of manufacturing in the United States and in Europe. We use a new data set (value added and employment, comparable number of regions in the United States and Europe, manufacturing disaggregated into 10 sectors, period 1987–1995/98). The main result is that the level of regional concentration is indeed higher in the United States, although the difference is much less than suggested by past studies, which relied on employment figures. Regional concentration has been declining over time, faster in the United States thus converging to the lower European level from above. In Europe, this tendency has been specifically evident since the installment of the Single Market Program.
34 citations
Posted Content•
TL;DR: In this paper, the authors investigated how the structure of manufacturing changes in the EU countries over the past 15 years and presented evidence about the specialisation of countries in production and exports in general and whether the share of the most important industries is decreasing or increasing under the impact of integration and globalisation.
Abstract: The article investigates how the structure of manufacturing changes in the EU countries over the past 15 years: it presents evidence about the specialisation of countries in production and exports in general and whether the share of the most important industries is decreasing or increasing under the impact of integration and globalisation.
25 citations
References
More filters
TL;DR: In this paper, the authors present a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity, which is essentially a competitive equilibrium model with endogenous technological change.
Abstract: This paper presents a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity. It is essentially a competitive equilibrium model with endogenous technological change. In contrast to models based on diminishing returns, growth rates can be increasing over time, the effects of small disturbances can be amplified by the actions of private agents, and large countries may always grow faster than small countries. Long-run evidence is offered in support of the empirical relevance of these possibilities.
18,200 citations
Posted Content•
TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
Abstract: Growth in this model is driven by technological change that arises from intentional investment decisions made by profit maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported, and instead, the equilibriumis one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
11,095 citations
Book•
01 Jan 1817
TL;DR: The editors of this monumental undertaking as discussed by the authors have achieved near perfection as near to perfection as anything human can be, and nothing but praise can be accorded to the editors and reviewers.
Abstract: Nothing but praise can be accorded to the editors of this monumental undertaking. As near perfection as anything human can be.
5,995 citations
TL;DR: The authors developed a simple, general equilibrium model of non-comparative advantage trade and showed that trade and gains from trade will occur, even between countries with identical tastes, technology, and factor endowments.
3,756 citations
TL;DR: This article developed a simple general equilibrium model of international trade in which the location of plants in a differentiated product industry is a decision variable, which is then used to derive predictions of trade pattern, volumes of trade, the share of intra-industry trade, and the share in intra-firm trade as functions of relative country size and differences in relative factor endowments.
Abstract: Using the idea that firm-specific assets associated with marketing, management, and product-specific R & D can be used to service production plants in countries other than the country in which these inputs are employed, I develop a simple general equilibrium model of international trade in which the location of plants in a differentiated product industry is a decision variable. The model is then used to derive predictions of trade pattern, volumes of trade, the share of intra-industry trade, and the share of intrafirm trade as functions of relative country size and differences in relative factor endowments.
2,018 citations