Comparative advantage and economic geography : estimating the determinants of industrial location in the EU

Midelfart-Knarvik, K. H., Overman, H. G.ORCID logo & Venables, A. (2001). Comparative advantage and economic geography : estimating the determinants of industrial location in the EU. (CEPR Discussion papers 2618). Centre for Economic Policy Research, London School of Economics and Political Science.
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We develop and econometrically estimate a model of the location of industries across countries. The model combines factor endowments and geographical considerations, and shows how industry and country characteristics interact to determine the location of production. We estimate the model on sectoral data for EU countries over the period 1980-97, and find that endowments of skilled and scientific labour are important determinants of industrial structure, as also are forward and backward linkages to industry.
Item Type Working paper
Copyright holders Copyright © 2001 K.H. Midelfart-Knarvik, H.G. Overman & A.J. Venables. LSE has developed LSE Research Online so that users may access research output of the School. Copyright and Moral Rights for the papers on this site are retained by the individual auth
Departments LSE
Date Deposited 14 Mar 2006
URI https://researchonline.lse.ac.uk/id/eprint/677

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