Integration and industrial specialisation in the European Union

This paper analyses the industrial structure of the European Union. Our results show that from 1980 onwards, the industrial structures of EU economies have become increasingly dissimilar. In contrast, results for individual industries are more varied. Some industries have become more concentrated, while others have dispersed. Regression results suggest that both comparative advantage and economic geography forces are driving these changes. Despite these findings, a comparison with the US shows that EU industry remains less concentrated suggesting that there may be someway to go before the relocation process reaches its limit.