Integration, Specialization, and the Adjustment [report]

Paul Krugman, Anthony Venables
1993 unpublished
In the United States, many industries have a Silicon Valley-type geographic localization. In Europe, these same industries often have four or more major centers of production. This difference is presumably the result of the formal and informal trade bathers that have divided the European market. With the growing integration of that market, however, there is the possibility that Europe will develop an American-style economic geography. This paper uses a theoretical model of industrial
more » ... dustrial localization to demonstrate this possibility, and to show the possible transition costs associated with this shift.
doi:10.3386/w4559 fatcat:56yhtpr2urfz5e3vikltvls5ua