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Economic integration and industrial agglomeration

Abstract:
This paper reviews recent research on industrial location, focusing on the way in which reducing barriers to trade may induce relocation of industry. Integration may cause industries to agglomerate in a few locations, this causing divergence of the structure of integrating economies, and possibly also divergence of income levels. Smaller locations will have lower real wages than large ones, although in the limit--as trade costs go to zero--factor price equalization occurs.
Publication status:
Published
Peer review status:
Peer reviewed

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Oxford college:
New College
Role:
Author


Publisher:
Economic & Social Research Institute
Journal:
Economic and Social Review More from this journal
Volume:
26
Issue:
1
Pages:
1-17
Publication date:
1994-01-01
ISSN:
0012-9984


Language:
English
Keywords:
UUID:
uuid:f6519e61-8f8a-4fbd-bd78-2f6abb4b8213
Local pid:
oai:economics.ouls.ox.ac.uk:10471
Deposit date:
2011-08-16
ARK identifier:

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