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ResearchPaper
2008

Globalization and the spatial concentration of production

Abstract (English)

New trade theory models predict that freer trade increases the spatial concentration of industrial production across countries. While nations with large home markets and central geographical location become increasingly attractive business locations, small peripheral countries gradually deindustrialize. Using data for 26 industries, 20 OECD countries and 20 years, we investigate the empirical validity of this claim. Separating out the role of home market size from geographical factors, and using various panel methods, we find robust evidence in line with theory. Freer trade has indeed magnified the importance of domestic demand and geographical location for the pattern of industrial production across the globeand has therefore exacerbated spatial disparities.

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Notes

Publication license

Publication series

Hohenheimer Diskussionsbeiträge; 301

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institut für Volkswirtschaftslehre (bis 2010)

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Standardized keywords (GND)

Sustainable Development Goals

BibTeX

@techreport{Niepmann2008, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5222}, author = {Niepmann, Friederike and Felbermayr, Gabriel J.}, title = {Globalization and the spatial concentration of production}, year = {2008}, school = {Universität Hohenheim}, series = {Hohenheimer Diskussionsbeiträge}, }
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