This article examines the location of manufacturing industries in the European Union. It draws on intra-industry trade measures for 1961–90 and on sectoral employment data by countries and regions. The analysis of employment data suggests that EU industry has become increasingly localized in the 1980s. Increasing-returns industries are strongly concentrated at the economic core of the EU and di...

This paper analyzes trade in East Asia and inter-industry linkages over the borders, i.e. spatial linkages, with use of the Asian international input-output tables. As a result of analysis, it was shown that intra-regional trade within the eight East Asian countries, the U.S and Japan has been driven by the intermediate goods trade. At the same time, intermediate goods, especially those of the ...

In this paper, we merge the heterogenous firm model of Melitz (2003) with the Ricardian model of Dornbusch, Fisher and Samuelson (DFS 1977) to explain how the pattern of international specialization and trade is determined by the interaction of comparative advantage, economies of scale, country sizes and trade barriers. The model is able to capture the existence of inter-industry trade and intr...

We study the impact of intra-industry trade and capital mobility on steady state welfare stability properties two countries with identical technologies preferences. consider a two-factor overlapping generations model, featuring one-sector differentiated goods taste for variety. There is imperfect competition in output market increasing returns to scale production (fixed costs externalities). In...