European integration and industrial specialization

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We survey the available evidence on industrial specialization patterns of EU member states for both production (output, value added) and employment. Additionally, we seek evidence on the extent and evolution of geographic concentration of European industries as well as on the driving forces that shape Europe’s economic geography. The evidence suggests that deeper economic integration within Europe induced stronger pressures for economic restructuring and increasing industrial specialization. Increased country specialization seems to move along with increased geographic concentration of European industries. However, during the 1990’s specialization and concentration move into different directions.