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Specialization and openness to foreign trade in the European Union

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Author Info
Elisa Álvarez López
Rafael Myro Sánchez

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Abstract

This study explores the relations between inter-industry specialization and openness to foreign competition in the European countries. By controlling for other variables influencing specialization, the study found a negative relationship between openness and inter-industry specialization, meaning that the closer the countries become in their degree of openness to trade, the closer are their industrial structures, as is expected from the Hecksher--Olhin--Vanek framework with equalization of factor prices. Nevertheless, control variables powerful influence specialization, claiming for a more complete theoretical framework.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 12 (2005)
Issue (Month): 13 (October)
Pages: 805-810
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Handle: RePEc:taf:apeclt:v:12:y:2005:i:13:p:805-810

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  9. Midelfart-Knarvik, K.H. & Overman, H.G. & Redding, S.J. & Venables, A.J., 2000. "The Location of European Industry," European Economy - Economic Papers 142, Commission of the EC, Directorate-General for Economic and Financial Affairs (DG ECFIN).
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  13. Limão, Nuno & Venables, Anthony J., 1999. "Geographical Disadvantage: A Heckscher-Ohlin-Von Thunen model of International Specialization," CEPR Discussion Papers 2305, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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