Trade and Economic Geography: The Impact of EEC Accession on the UK

24 Pages Posted: 27 Aug 2011

See all articles by Henry G. Overman

Henry G. Overman

London School of Economics (LSE) - Department of Geography and Environment; Centre for Economic Policy Research (CEPR)

L. Alan Winters

Government of the United Kingdom - Department for International Development (DFID)

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Date Written: September 2011

Abstract

We combine establishment‐level employment data with trade data by port to examine the impact of accession to the European Economic Community on the spatial distribution of UK manufacturing. We test the predictions from economic geography models of how external trade affects the spatial distribution of employment. We treat accession as a natural experiment which helps mitigate problems of endogeneity. Our results suggest that accession changed the country composition of trade and via the port composition induced an exogenous shock to different locations. In line with theory, we find that better access to export markets and intermediate goods increase employment while increased import competition decreases employment.

Suggested Citation

Overman, Henry G. and Winters, L. Alan, Trade and Economic Geography: The Impact of EEC Accession on the UK (September 2011). The Manchester School, Vol. 79, Issue 5, pp. 994-1017, 2011, Available at SSRN: https://ssrn.com/abstract=1917185 or http://dx.doi.org/10.1111/j.1467-9957.2010.02171.x

Henry G. Overman (Contact Author)

London School of Economics (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom
+44 20 7955 6581 (Phone)
+44 20 7955 7412 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

L. Alan Winters

Government of the United Kingdom - Department for International Development (DFID) ( email )

1 Palace Street
Warwick CV34 4RA
United Kingdom

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