Regional Integration and Internal Economic Geography - an Empirical Evaluation with Portuguese Data

Nuno Crespo () and Maria Paula Fontoura

No 2006/25, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: The effects of the reduction of international trade costs on the internal economic geography of each country have been very scarcely studied in empirical terms. With data for Portugal since its adhesion to the European Union, we test the hypotheses put forward by the new economic geography concerning the evolution of the spatial concentration of the manufacturing industry as a whole and of the different industries individually considered. We consider alternative concentration concepts and data disaggregated both at the level of NUTS III (28 regions) and concelhos (275 regions). Results show a dispersion of total industry as a consequence of the reduction of international trade costs, in line with Krugman and Elizondo (1996)’s prediction. Individual industries show a similar tendency, in contrast with the theoretical hypothesis.

Keywords: trade liberalization; industrial location; Portugal. (search for similar items in EconPapers)
JEL-codes: F12 F15 R12 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-geo and nep-int
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Related works:
Journal Article: REGIONAL INTEGRATION AND INTERNAL ECONOMIC GEOGRAPHY - AN EMPIRICAL EVALUATION WITH PORTUGUESE DATA (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:isegwp:wp252006

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