TY  - JOUR
AU  - Krugman,Paul
AU  - Venables,Anthony
TI  - Integration, Specialization, and the Adjustment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4559
PY  - 1993
Y2  - December 1993
UR  - http://www.nber.org/papers/w4559
L1  - http://www.nber.org/papers/w4559.pdf
N1  - Author contact info:
Paul R. Krugman
Department of Economics
Princeton University
Woodrow Wilson School
Princeton, NJ  08544
Tel: 609/258-4570
Fax: 609/258-2809
E-Mail: pkrugman@princeton.edu

Anthony Venables
Department of Economics
University of Oxford
Manor Road Building
Manor Road
Oxford OX1 3UQ, United Kingdom
and CEPR
E-Mail: tony.venables@economics.ox.ac.uk
AB  - In the United States, many industries have a Silicon Valley-type geographic localization.  In Europe, these same industries often have four or more major centers of production.  This difference is presumably the result of the formal and informal trade barriers that have divided the European market.  With the growing integration of that market, however, there is the possibility that Europe will develop an American-style economic geography.  This paper uses a theoretical model of industrial localization to demonstrate this possibility, and to show the possible transition costs associated with this shift.
ER  -