Economic Integration and Manufacturing Location in EU Accession Countries

Abstract

This paper investigates patterns of manufacturing location in the context of increased economic integration in European Union's accession countries. Using regional data for the period 1990-1999, we identify and compare patterns and determinants of manufacturing location in five countries: Bulgaria, Estonia, Hungary, Romania and Slovenia. Our research results indicate that factor endowments and geographic proximity to large markets determine the location of manufacturing in the analyzed countries.