Economic theories, be it (new) trade, (new) growth or (new) economic geography are far from being able to describe and explain regional concentration of sectors or sectoral specialisation of regions. Consequently, empirical work should shed more light on these developments in incumbent EU member states and Central and Easter Europe. Our analysis aims at providing a comprehensive overview over c...

A number of theoretical studies have predicted that preferential trade agreements (PTAs) raise outside multinationals’ incentive to invest in the participating countries, especially in those that are integrated with larger markets and have lower production costs. The hypothesis has, however, not been tested empirically. This paper addresses the issue by estimating the impact of PTAs on countrie...