| Abstract: | Trade and location theory identifies forces that could leadto locational dispersion (comparative advantage) or locationalconcentration (scale economies) in the face of globalizing markets,each with different consequences for specialization and theadjustment costs associated with integration. However, theseforces can play themselves out in very complex ways if locationalchange principally affects intermediate production. Moreover,effects of history may be important, if locational patternswhich exist prior to integration reflect either strong externaleconomies or, as we argue, strong institutionalized capacitiesto respond to more open markets. This could especially be thecase in the context of Europe, whose territories are generallyless specialized than the states of the USA. To see how thesedifferent effects are operating today, empirical measurementis required. Using a data set which allows changes in locationaldistribution of manufacturing industries in the OECD to be measured,we show that Europe does not seem to be ‘Americanizing’its economic geography. Many sectors are actually spreadingout in Europe, implying that the effects of history have remainedstrong up to this point. Specialization increases are weak inmost European economies as well. The OECD has a more complexpicture of spread and concentration. Some of the implicationsfor further research on agglomeration, intra-industry trade,and integration are brought out in the conclusion. |
