European Integration : Eastern Europe and the Swedish Regions

• The integration of Eastern with Western Europe will induce strong pressure on the regional restructuring process in these two parts of Europe. In Scandinavia, the new trade with the east is forced by large differences in factor earnings, technology, and social systems. Although there are similarities, which may stimulate intra-industry trade, large differences in close proximity create incentives for both trade and regional structural change based on absolute and comparative advantages. Since the pattern of regional specialisation in Sweden is highly diversified, some regions will be able to explore the opportunities resulting from this, while others will face intensified competition. In this paper, a newly developed industrial classification based on factor intensities is used to reveal the Swedish pattern of regional specialisation. After the regional picture has been presented, this is followed by a discussion of regional vulnerability based on comparative advantages at the national level.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Economic integration

Sweden

Regional structural change

EU

Eastern Europe

Trade

Intra-industry trade

Absolute advantages

Comparative advantages

Economics

Nationalekonomi

Publikations- och innehållstyp

vet (ämneskategori)

rap (ämneskategori)