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European Integration and Local Capacities for Manufacturing Adjustment and Change: The Case of Spain

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  • F.E. Ian Hamilton

    (Department of Geography and Environment, London School of Economics, Houghton Street, London, WC2A 3AE, UK, F.E.Hamilton@lse.ac.uk)

  • Andrés Rodríguez-Pose

    (Department of Geography and Environment, London School of Economics, Houghton Street, London, WC2A 3AE, UK, A.Rodriguez-Pose@lse.ac.uk)

Abstract

The southward enlargement of the European Community with the full accession of Spain and Portugal in 1986 and the creation of the Single Market in 1993 have opened up new opportunities for exports to the EU and have intensified competition with Spanish-made products in the rest of the EU. This paper hypothesises that local adjustment to European integration is conditioned by the comparative local advantages (or disadvantages) in human resources, nodality and external economies which can shape local capacity for the achievement of economies of scale in production, technological modernisation, the development of small and medium enterprises (SMEs) and business services. The capacities for these four dynamic processes are articulated through the interaction between the investment decisions of Spanish and foreign-owned firms and the local comparative advantages, and hence influence the capacity of localities to respond to European integration through trade creation and trade diversion.

Suggested Citation

  • F.E. Ian Hamilton & Andrés Rodríguez-Pose, 2001. "European Integration and Local Capacities for Manufacturing Adjustment and Change: The Case of Spain," Urban Studies, Urban Studies Journal Limited, vol. 38(7), pages 1103-1120, June.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:7:p:1103-1120
    DOI: 10.1080/00420980123451
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    References listed on IDEAS

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    Cited by:

    1. Bode, Eckhardt & Krieger-Boden, Christiane & Siedenburg, Florian & Soltwedel, Rüdiger, 2005. "European integration, regional structural change and cohesion in Spain," Open Access Publications from Kiel Institute for the World Economy 3766, Kiel Institute for the World Economy (IfW Kiel).
    2. Iva Miranda Pires, 2006. "Iberian Market Integration: A Case Study of a Regional Integration Process," ERSA conference papers ersa06p713, European Regional Science Association.

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