Abstract.This article aims to analyze the effects of trade policies on the pattern of regional inequalities within a country. It is inspired, firstly, by the debate concerning the role of protectionist policies in the development of a pattern of striking regional inequalities during the Spanish industrialization process and, secondly, by current evidence of an increase in these inequalities following Spain's entry in the EU, in 1986. We employ an economic geography model comprising three regions: two domestic and one external. Labor mobility is permitted between the domestic regions but not with the external region. The model shows that trade liberalization increases regional inequalities. JEL classification: F12, F15, R12

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This paper examines whether access to markets had a significant influence on migration choices of Spanish internal migrants in the interwar years. In it we perform a structural contrast of a New Economic Geography model that focuses on the forward linkage that links workers location choice with the geography of industrial production. The results prove the existence of a direct relation between workers' localization decisions and the market potential of the host regions. This could help to explain the apparently low intensity of internal migrations in Spain until the 1920s as well as its geography.

*This paper was written while I was a visiting research student at the LSE. I would like to thank Tony Venables for his continuous help during this period. I also thank Paul Krugman and Diego Puga for their useful comments and an anonymous referee. The remaining errors are mine.

The aim of this paper is to analyse how economic integration in Europe has affected industrial geographical concentration in Spain and to explain the driving forces behind industry location. First, we construct regional specialization and geographical concentration indices for 50 Spanish provinces (NUTS III) and 30 industrial sectors in 1979, 1986 and 1992. Second, we carry out an econometric analysis of the determinants of the geographical concentration of industries. Our main conclusion is that there is no evidence of increasing specialization in Spain between 1979 and 1992, and that the most important determinant of Spain's economic geography is scale economies. Furthermore, traditional trade theory does not play a role in explaining the pattern of industrial concentration. Finally, inter-industry linkages have a negative effect on concentration, indicating that the opening up of the Spanish economy may have lessened the importance of being close to suppliers. Cet article cherche à analyser comment l'intégration économique en Europe a influé sur la concentration géographique industrielle en Espagne et à expliquer les forces motrices à l'origine de la localisation industrielle. Dans un premier temps, on construit des indices de spécialisation régionale et de concentration géographique pour 50 provinces en Espagne (NUTS III) et pour 30 secteurs industriels en 1979, 1986 et 1992. Dans un deuxième temps, on fait une analyse économétrique des déterminants de la concentration géographique des industries. Cela amènèa conclure que la spécialisation ne se développe pas en Espagne entre 1979 et 1992, et que les économies d'échelle constituent le déterminant le plus important de la géographie économique d'Espagne. En outre, la théorie d'échanges traditionnelle ne joue aucun rôle dans la structure de la concentration industrielle. Finalement, les échanges inter-industriels ont un impact négatif sur la concentration, ce qui laisse supposer que l'ouverture de l'économie espagnole aurait pu réduire l'importance de la proximité aux fournisseurs. Das Ziel dieses Aufsatzes ist, zu analysieren, inwieweit wirtschaftliche Integration in Europa sich auf die geographische Konzentration der Industrien in Spanien ausgewirkt hat, und die treibenden Kräfte hinter Industriestandortwahl zu erklären. Zunächst werden Register der regionalen Spezialisierung und der geographischen Konzentration für 50 spanische Provinzen (NUTS III) und für 30 Industriesektoren in den Jahren 1979, 1986 und 1992 aufgestellt. Danach wird eine ökonomische Analyse der die geographische Konzentration der Industrien bestimmenden Faktoren durchgeführt. Die Hauptschlußfolgerung der Autoren lief darauf hinaus, daß im Zeitraum 1970-1992 keinerlei Anzeichen zunehmender Spezialisierung in Spanien zu verzeichnen waren, und daß der wichtigste, ausschlaggebende Faktor der Wirtschaftsgeographie Spaniens in der Kostendigression zu sehen ist. Darüber hinaus spielt überkommene Handelstheorie keine Rolle bei der Erklärung von Mustern industrieller Konzentration. Ein letzter Punkt...