The stylized fact that regional concentration is lower in Europe than in the USA has led to the prediction that the creation of the Single Market might increase spatial concentration in Europe. This has raised some fears that the social and political burden of rapid change might counterbalance...

The paper proposes a distinction between the two dimensions of convergence-<i>within</i> and <i>between</i> countries-when analyzing the impact of cross-border outsourcing on real wage rates in the EU-15 and the CEEC. In the CEEC, international outsourcing has not affected the adjustment of average real wage...

The overwhelming importance of multinational activities as well as the coexistence of exporters and multinationals within the developed countries demand for theoretical models which provide a convincing explanation of simultaneous two-way trade and horizontal multinational activities. We present...