The Dynamics of European Industrial Structure
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.Download Info
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Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 176.Length: 40 pages
Date of creation: 03 May 2002
Date of revision:
Handle: RePEc:hhs:fiefwp:0176
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Keywords: Specialisation; Productivity; Trade; Technology; Technology transfers; R&D;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; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-05-14 (All new papers)
- NEP-EEC-2002-05-14 (European Economics)
- NEP-MIC-2002-05-14 (Microeconomics)
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