1TRADE AND THE LOCATION OF INDUSTRIES IN THE OECD AND EUROPEAN UNION1 by

Accepted for publication in The Journal of Economic Geography Trade and location theory identifies forces that could lead to l cational dispersion (comparative advantage) or locational concentration (scale economies) in the face of globalizing markets, each with different consequences for specialization and the adjustment costs associated with integration. However, these forces can play themselves out in very complex ways if locational change principally affects intermediate production. Moreover, effects of history may be important, if l c tional patterns which exist prior to integration reflect either strong external economies or, as we argue, strong institutionalized capacities to respond to more open markets. This could especially be the case in the context of Europe, whose territories are generally less specialized than the States of the USA. To see how these different effects are operating today, empirical measurement i