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By Michael Storper, Yun-chung Chen, Fernando De Paolis, Michael Storper Ii, Yun-chung Chen Iii and Fernando De Paolis Iv


Most international trade theory, whether classical or "new, " predictst that increased globalization will be associated with increased locational concentration of particular economic activities, and hence increased specialization of national and regional economies, due to the greater freedom for industries to locate according to comparative advantage and economies of scale, and to integrate production systems based on an internationalization of intermediate goods sourcing. Relatively little empirical evidence exists on whether these predictions are correct. This paper presents the results of a statistical investigation of the trade-location relationship, using the OECD-STAN database, from 1970 to 1995. This investigation shows that in spite of rapidly rising trade, only in a very few industries has the spatial distribution changed substantially over the period studied. While intra-industry trade has risen across-the-board, locational concentration and specialization have increased little, if at all, in the European Union countries, and European economies remain much less specialized than equivalent regions of the USA

Year: 2000
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