Country Size and Comparative Advantage: An Empirical Study
AbstractWe formulate a simple model that captures two recent hypotheses: (i) that countries with an abundant absolute endowment of skilled labour will be net exporters in R&D-intensive industries; and (ii) that countries with a large domestic market will be net exporters in scale-intensive industries. The hypotheses are empirically tested by studying the trade of each and every OECD country individually. Thereafter, we pool the data into one regression by introducing, simultaneously, country and industry characteristics. The results offer relatively strong support for hypothesis (i) and some support for hypothesis (ii).
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1554.
Date of creation: Jan 1997
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Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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- Pablo Sanguinetti & Iulia Traistaru & Christian Volpe Martincus, 2004. "Economic Integration and Location of Production Activities: The Case of Mercosur," IDB Publications 13858, Inter-American Development Bank.
- Johan Torstensson, 1998. "Country size and comparative advantage: An empirical study," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(4), pages 590-611, December.
- Antonio Ricci, Luca, 1999. "Economic geography and comparative advantage:: Agglomeration versus specialization," European Economic Review, Elsevier, vol. 43(2), pages 357-377, February.
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