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

37 Pages Posted: 27 Jun 2006

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

University of Sussex; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: March 2006

Abstract

This paper combines establishment level production data with international trade data by port to examine the impact of accession to the EEC on the spatial distribution of UK manufacturing. We use this data to test the predictions from economic geography models of how external trade affects the spatial distribution of employment. Our results suggest that accession changed the country-composition of UK trade and via the port-composition induced an exogenous shock to the economic environment in 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.

Keywords: Economic geography, EEC, UK manufacturing

JEL Classification: F14, F15, R12

Suggested Citation

Overman, Henry G. and Winters, L. Alan Alan, Trade and Economic Geography: The Impact of Eec Accession on the UK (March 2006). CEPR Discussion Paper No. 5574, Available at SSRN: https://ssrn.com/abstract=912484

Henry G. Overman (Contact Author)

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

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L. Alan Alan Winters

University of Sussex ( email )

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