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

摘要

We develop and econometrically estimate a model of the location of industries acrosscountries. The model combines factor endowments and geographical considerations, andshows how industry and country characteristics interact to determine the location ofproduction. We estimate the model on sectoral data for EU countries over the period1980-97, and find that endowments of skilled and scientific labour are importantdeterminants of industrial structure, as also are forward and backward linkages to industry.