Technology, factor endowments, and specialization in OECD countries: the role of variable capital utilization
AbstractThis 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.
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Bibliographic InfoArticle provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.
Volume (Year): 10 (2010)
Issue (Month): 2 ()
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Find related papers by 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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