| Abstract: | 'New' trade theories and the 'new economic geography' theoriesmake a number of predictions about the characteristics of theindustries we should expect to become geographically concentratedand the characteristics of the countries where these locate.This paper surveys empirical studies that have evaluated thesenew trade theories in the light of the EU's experience. Consistentwith new trade theories, empirical studies suggest that geographicallyconcentrated industries are subject to scale economies and havea high proportion of intermediate inputs in final production;and they concentrate in countries that have access to largemarkets. |
