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The Dynamics of International Trade Patterns

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  • Paulo Bastos

    ()

  • Manuel Cabral

Abstract

This paper introduces new dynamic measures for examining changes in international trade patterns. Using data for 20 OECD countries over the 1980-2000 period, we show that inter-industry trade changes contrary to countries' previous specialisation are frequently the dominant form of trade expansion. The econometric analysis indicates that the observed changes in trade patterns were explained by initial endowments of human-capital and industry-specific changes in labour productivity and labour costs. The results also suggest that trade liberalisation induced an increase in the previous specialisation of larger OECD economies in industries with increasing returns to scale.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 143 (2007)
Issue (Month): 3 (October)
Pages: 391-415

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Handle: RePEc:spr:weltar:v:143:y:2007:i:3:p:391-415

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Related research

Keywords: Dynamics of international specialization; trade liberalization; technology transfers;

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References

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  1. Patrik Tingvall, 2004. "The dynamics of European industrial structure," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(4), pages 665-687, December.
  2. Manuel Cabral & Joana Silva, 2006. "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 496-520, October.
  3. Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.
  4. Marius Brülhart & Robert Elliott, 2002. "Labour-market effects of intra-industry trade: Evidence for the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 207-228, June.
  5. Forslid, Rikard & Haaland, Jan I. & Ulltveit-Moe, Karen-Helene, 1999. "A U-Shaped Europe? A Simulation Study of Industrial Location," CEPR Discussion Papers 2247, C.E.P.R. Discussion Papers.
  6. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
  7. Davis, Donald R. & Weinstein, David E., 2003. "Market access, economic geography and comparative advantage: an empirical test," Journal of International Economics, Elsevier, vol. 59(1), pages 1-23, January.
  8. Redding, Stephen, 1999. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 15-39, January.
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Citations

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Cited by:
  1. Phan, Thanh Hoan & Jeong, Ji Young, 2012. "An Analysis of Korea-Vietnam Bilateral Trade Relation," MPRA Paper 48312, University Library of Munich, Germany.
  2. Krenz, Astrid & Rübel, Gerhard, 2010. "Industrial localization and countries' specialization in the European Union: An empirical investigation," Center for European, Governance and Economic Development Research Discussion Papers 106, University of Goettingen, Department of Economics.
  3. Oana Ancuta STANGACIU & Eugenia HARJA, 2013. "Testing The Models Of Regional Specialization In Terms Of New Theories Of International Trade," Romanian Statistical Review, Romanian Statistical Review, vol. 61(2), pages 16-28, March.
  4. Jorge Braga de Macedo & Luís Brites Pereira, 2010. "Cape Verde and Mozambique as Development Successes in West and Southern Africa," NBER Working Papers 16552, National Bureau of Economic Research, Inc.
  5. Krenz, Astrid & Rübel, Gerhard, 2010. "Industrial localization and countries' specialization in the European Union: An empirical investigation," Center for European, Governance and Economic Development Research Discussion Papers 106, University of Goettingen, Department of Economics.
  6. Oana Ancuta Stangaciu, 2013. "The Regional Assessment Of Marginal Intra-Industry Specialization," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 18.

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