Abstract
This paper shows that both relative wages and industry structure vary considerably across regions of the United Kingdom. In accordance with the neoclassical model of trade, regions abundant in a factor (i) exhibit lower relative prices of that factor than regions scarce in the factor, and (ii) tend to specialize in a mix of industries intensive in the use of the factor. We show that this specialization leads UK regions to be asymmetrically exposed to external macroeconomic or international trade shocks.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 431-459 |
| Number of pages | 29 |
| Journal | Oxford Bulletin of Economics and Statistics |
| Volume | 70 |
| Issue number | 4 |
| DOIs | |
| State | Published - Aug 2008 |
| Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Statistics and Probability
- Social Sciences (miscellaneous)
- Economics and Econometrics
- Statistics, Probability and Uncertainty