An Account of Geographic Concentration Patterns in Europe

Abstract

This paper provides a methodologically rigorous description of sectoral location patterns across Western European regions over the 1975-2000 period. To measure geographic concentration, we use decomposable entropy indices and associated bootstrap tests. In addition, we estimate locational centre-periphery gradients for individual sectors and the impact of the EU membership on countries' internal geography. It is found that manufacturing has become gradually and statistically significantly more concentrated, although the locational bias towards central regions has become weaker. Conversely, market services have been relocating towards centrally located regions. Accession to the EU has strengthened countries' internal concentration trends.

Keywords: Geographic concentration, EU regions, centre-periphery gradients, entropy indices, bootstrap inference

JEL Classification: R12, R14, F15