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The Dynamics of European Industrial Structure

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Author Info
Gustavsson, Patrik (Trade Union Institute for Economic Research)
Abstract

Has the European integration process lead to increased specialisation and what drives changes in specialisation? To address these questions we apply a model that incorporates endowments, technology and increasing returns to scale (IRS). Analyses reveal that countries with high capital accumulation have become increasingly specialised in capital-intensive industries; this holds for both human and physical capital while countries have diverged (converged) in physical (human) capital abundance. No increased concentration of IRS industries to large markets is found. Analysing R&D indicates scale economies in R&D at the firm level and that firm level R&D is what drives competitiveness. Finally, there is robust evidence for a domestic interdependency in industries specialisation patterns.

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Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 176.

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Length: 40 pages
Date of creation: 03 May 2002
Date of revision:
Handle: RePEc:hhs:fiefwp:0176

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Related research
Keywords: Specialisation; Productivity; Trade; Technology; Technology transfers; R&D;

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Find related papers by JEL classification:
C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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