Specialization dynamics

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Abstract

This paper proposes a new empirical framework for analyzing specialization dynamics. A country's pattern of specialization is viewed as a distribution across sectors, and statistical techniques for analyzing the evolution of this entire distribution are employed. The empirical framework is implemented using data on 20 industries in seven OECD countries since 1970. We find substantial mobility in patterns of specialization. Over time horizons of 5 years, this is largely explained by forces common across countries, including world prices and common changes in technical efficiency. Over longer time horizons, country-specific changes in factor endowments become more important. There is no evidence of an increase in countries' overall degree of specialization.

Original languageEnglish (US)
Pages (from-to)299-334
Number of pages36
JournalJournal of International Economics
Volume58
Issue number2
DOIs
StatePublished - Dec 2002
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Keywords

  • Distribution dynamics
  • Factor endowments
  • International trade
  • Neoclassical model

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