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Technology, factor endowments, and specialization in OECD countries: the role of variable capital utilization

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  • Serge SHIKHER

Abstract

This paper studies how specialization, measured by industry shares in GDP, is affected by technology and factor endowments. The empirical methodology takes into account variable factor utilization with capital utilization calculated from the consumption of electricity. Estimation results show that ignoring variable capital utilization overstates the effects of technology on specialization. The model is used to explain the differential changes in specialization that occurred in Korea and Turkey between 1975 and 1995. The results show that capital rather than technology accumulation was the most important determinant of this differential.

Suggested Citation

  • Serge SHIKHER, 2010. "Technology, factor endowments, and specialization in OECD countries: the role of variable capital utilization," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    • Handle: RePEc:eaa:aeinde:v:10:y:2010:i:2_3
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    References listed on IDEAS

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    More about this item

    Keywords

    specialization; technological comparative advantage; factor endowments; capital utilization; energy efficiency;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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