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An Account of Geographic Concentration Patterns in Europe

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An Account of Geographic Concentration Patterns in Europe An Account of Geographic Concentration Patterns in Europe Marius Brülhart Rolf Traeger HWWA DISCUSSION PAPER 226 Hamburgisches Welt-Wirtschafts-Archiv (HWWA) Hamburg Institute of International Economics 2003 ISSN 1616-4814 Hamburgisches Welt-Wirtschafts-Archiv (HWWA) Hamburg Institute of International Economics Neuer Jungfernstieg 21 - 20347 Hamburg, Germany Telefon: 040/428 34 355 Telefax: 040/428 34 451 e-mail: [email protected] Internet: http://www.hwwa.de The HWWA is a member of: • Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz (WGL) • Arbeitsgemeinschaft deutscher wirtschaftswissenschaftlicher Forschungsinstitute (ARGE) • Association d’Instituts Européens de Conjoncture Economique (AIECE) HWWA Discussion Paper An Account of Geographic Concentration Patterns in Europe Marius Brülhart* Rolf Traeger** HWWA Discussion Paper 226 http://www.hwwa.de Hamburg Institute of International Economics (HWWA) Neuer Jungfernstieg 21 - 20347 Hamburg, Germany e-mail: [email protected] * DEEP-HEC, University of Lausanne ** United Nations Economic Commission for Europe, Geneva. Any opinions ex- pressed in this paper are those of the authors and do not necessarily reflect those of UNECE or its member countries. An earlier version of this paper was presented at the 1st HWWA Workshop on Current Developments in Regional Research which took place in Hamburg 25-26 November, 2002. The authors would like to thank Philip Lane for helpful comments and Martin Hallet for the generous provision of data. Financial support from the Swiss National Science Foundation (grant 612-65970) and from the UK Economic and Social Research Council (ESRC grant L138251002) is gratefully acknowledged. This discussion paper is assigned to the HWWA’s research programme “European Inte- gration and Spatial Development”. Marius Brülhart is a research associate of this pro- gramme. Edited by the Department European Integration Head: Dr. Konrad Lammers HWWA DISCUSSION PAPER 226 May 2003 An Account of Geographic Concentration Patterns in Europe ABSTRACT Using entropy indices and associated bootstrap tests, we describe the distribution of economic sectors across Western European regions over the 1975-2000 period. We de- compose geographic concentration into its within-country and between-country compo- nents. In addition, we estimate centre-periphery gradients in sectoral location patterns and the impact of EU membership on countries’ internal geography. It is found that manufacturing has become gradually more concentrated, although the locational bias towards central regions has become weaker. Conversely, market services have been re- locating towards centrally located regions. EU integration appears to have strengthened countries’ internal concentration trends. JEL-Classification: R12, R14, F15 Keywords: geographic concentration, EU regions, centre-periphery gradients, entropy indices, bootstrap inference Correspondence address: Marius Brülhart Départment d’économétrie et économie politique Ecole des HEC, Université de Lausanne CH – 1015 Lausanne Switzerland E-mail: [email protected] http://www.hec.unil.ch/mbrulhar/ 4Lqwurgxfwlrq Wkh vsdwldo dqdo|vlv ri lqwhjudwlqj pdunhw hfrqrplhv kdv uhfhqwo| uhjdlqhg surpl0 qhqfh rq wkh hfrqrplf uhvhdufk djhqgd1 Wklv kdv wzr pdlq uhdvrqv1 Iluvw/ dv srolf| lqlwldwlyhv dqg whfkqrorjlfdo dgydqfhv kdyh frqvsluhg ryhu wkh odvw kdoi0fhqwxu| wr uh0 gxfh wkh frvwv ri hfrqrplf wudqvdfwlrqv dfurvv uhjlrq dqg frxqwu| erughuv/ hfrqrplf dfwlylwlhv duh jhqhudoo| eholhyhg wr kdyh ehfrph lqfuhdvlqjo| irrworrvh1 Vhfrqg/ wkhrulvwv kdyh pdgh vxevwdqwldo surjuhvv lq wkh 4<<3v lq prghoolqj orfdwlrq irufhv wkdw duh qrw gxh wr xqghuo|lqj vsdwldo khwhurjhqhlw| exw wr wkh lqwhusod| ehwzhhq pdunhw irufhv dqg glvwdqfh frvwv lq 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