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Specialization dynamics

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  • Redding, Stephen

Abstract

This paper proposes a new empirical framework for analyzing specialization dynamics. A country’s pattern of specialization is viewed as a distribution across sectors, and statistical techniques for analyzing the evolution of this entire distribution are employed. The empirical framework is implemented using data on 20 industries in 7 OECD countries since 1970. We find substantial mobility in patterns of specialization. Over time horizons of 5 years, this is largely explained by forces common across countries including world prices and common changes in technical efficiency. Over longer time horizons, country-specific changes in factor endowments become more important. There is no evidence of an increase in countries’ overall degree of specialization.

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  • Redding, Stephen, 2002. "Specialization dynamics," LSE Research Online Documents on Economics 210, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:210
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    More about this item

    Keywords

    distribution dynamics; factor endowments; international trade; neoclassical model.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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