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The Theory of New Economic Geography and Industrial Location in SADC

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  • Petersson, Lennart

    (Department of Economics, Lund University)

Abstract

This paper evaluates the new theories of trade and economic geography in the light of the pattern of regional specialisation in Southern Africa. The analysis is applied to the nine South African provinces and the SADC member countries of 1995, except Angola. Based on Gini coefficients, the regional specialisation of provinces and countries and dispersion/concentration of manufacturing employment are revealed, reflecting the outcomes of import substitution, the export-oriented policy of Mauritius and, finally, the trade liberalisation within the Southern African Customs Union (SACU). Industry location and centrality of regions are analysed, and the findings indicate that industries subject to internal and external scale economies are geographically concentrated in regions with large home markets, while access to nearby regional markets appears to be of minor importance.

Suggested Citation

  • Petersson, Lennart, 2000. "The Theory of New Economic Geography and Industrial Location in SADC," Working Papers 2000:6, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2000_006
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    References listed on IDEAS

    as
    1. Marius Brülhart, 1998. "Trading Places: Industrial Specialization in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 36(3), pages 319-346, September.
    2. Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the ‘New Economic Geography’," The World Economy, Wiley Blackwell, vol. 21(6), pages 707-731, August.
    3. Venables, Anthony J., 1999. "Regional integration agreements - a force for convergence or divergence?," Policy Research Working Paper Series 2260, The World Bank.
    4. Venables, Anthony J, 1998. "The Assessment: Trade and Location," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 1-6, Summer.
    5. Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 45-53, Summer.
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    2. Seravalli, Gilberto, 2011. "Neither easy nor impossible: Local development economics and policy," MPRA Paper 32743, University Library of Munich, Germany.

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    More about this item

    Keywords

    economic geography; industrial location; market integration; specialisation;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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