Britain, the European Community, and the Centralisation of Production: Theory and Evidence, Freight Movements

Abstract

The rapid growth in Britain's trading relationships with Europe in the postwar period is often interpreted to imply a significant shift in the relative advantages of locations in the southeastern part of the country. Such a shift ought to be evident in the pattern of traffic through the ports. At the aggregate level, there has indeed been some shift in the relative importance of ports in favour of the southeast. Closer inspection shows, however, a complex pattern of change, in which port location is only one factor. The evidence of the port data, when considered in conjunction with evidence on transport costs and other factors, suggests that theories of the centralisation of production miss much of importance; competitive efficiency can generally compensate for any transport-cost disadvantages arising from location.