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Persistence and Mobility in International Trade

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  • Proudman, James
  • Redding, Stephen J

Abstract

The theoretical literature on endogenous growth and international trade suggests that comparative advantage is endogenous. Sector-specific learning by doing and technology transfer respectively provide reasons why initial patterns of international specialization may persist or exhibit mobility over time. This paper evaluates the extent of persistence or mobility in trade in manufactured goods in Germany and the United Kingdom for the period 1970–93. A measure of the extent of specialization is presented and its evolution over time modelled as a sequence of cross-section distributions. Evidence of considerable mobility is found, with the degree of mobility in the United Kingdom exceeding that in Germany.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1802.

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Date of creation: Mar 1998
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Handle: RePEc:cpr:ceprdp:1802

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Related research

Keywords: Distribution Dynamics; International Trade; Learning by Doing; Markov chains; revealed comparative advantage; Technological Change;

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Cited by:
  1. Andrea Brasili & Paolo Epifani & Rodolfo Helg, 2000. "On the Dynamics of Trade Patterns," International Trade 0004006, EconWPA.
  2. Maria Luisa Mancusi, 2000. "Geographical Concentration and the Dynamics of Countries' Specialization in Technologies," KITeS Working Papers 125, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Aug 2001.
  3. Stephen Redding, 2002. "Specialization dynamics," LSE Research Online Documents on Economics 210, London School of Economics and Political Science, LSE Library.
  4. Stephen Redding & Mercedes Vera-Martin, 2001. "Factor endowments and production in European regions," LSE Research Online Documents on Economics 3713, London School of Economics and Political Science, LSE Library.
  5. Jeroen Hinloopen & Charles van Marrewijk, 2005. "Empirical Relevance of the Hillman Condition for Revealed Comparative Advantage: 10 Stylized Facts," Working Papers 05-24, Utrecht School of Economics.
  6. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 1-35, March.
  7. Tibor Besedes & Thomas J. Prusa, 2003. "On the Duration of Trade," NBER Working Papers 9936, National Bureau of Economic Research, Inc.
  8. Simona Iammarino & Paolo Guerrieri, 2003. "The Dynamics of Export Specialisation in the Regions of the Italian Mezzogiorno: Persistence and Change," ERSA conference papers ersa03p123, European Regional Science Association.
  9. Amador, João & Cabral, Sónia & Ramos Maria, José, 2007. "International Trade Patterns over the Last Four Decades: How does Portugal Compare with other Cohesion Countries?," MPRA Paper 5996, University Library of Munich, Germany.
  10. Joaquin Andaluz & Luis Fernando Lanaspa & Fernando Sanz, 2002. "Geographical Dynamics: A Sectoral Comparison Between the Economic Landscapes of the United States and Europe," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 321-332.
  11. J. David Richardson & Chi Zhang, 1999. "Revealing Comparative Advantage: Chaotic or Coherent Patterns Across Time and Sector and U.S. Trading Partner?," NBER Working Papers 7212, National Bureau of Economic Research, Inc.
  12. Maria Luisa Mancusi, 2000. "The Dynamics of Technology in Industrial Countries," KITeS Working Papers 118, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2000.
  13. Gavin Cameron & James Proudman & Stephen Redding, 1997. "Deconstructing Growth in UK Manufacturing," Bank of England working papers 73, Bank of England.
  14. Redding, Stephen, 2002. "Specialization dynamics," Journal of International Economics, Elsevier, vol. 58(2), pages 299-334, December.

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