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Adam Smith Meets an Index of Specialization in International Trade

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  • Mitchell H. Kellman

    ()
    (Department of Economics, The City College of New York, and the Graduate Center of the City University of New York)

  • Yochanan Shachmurove

    ()
    (Department of Economics, The City College of New York, and the Graduate Center of the City University of New York)

Abstract

Development economists agree that increasing export diversification is a concomitant to economic development. An accepted explanation for Africa’s export stagnation is its dependence on monoculture, and on small number of commodities. Recently a large body of literature focuses on the relationship between economic growth and export specialization. However, there does not exist one generally acceptable measure or index for the concept of “Specialization in International Trade”. This paper suggest one such measure for specialization and its theoretical and conceptual framework are developed and applied to Singapore, South Korea, Malaysia, Mexico, Tunisia and Morocco, during the years of their take offs.

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Bibliographic Info

Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 10-029.

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Length: 24 pages
Date of creation: 06 Aug 2010
Date of revision:
Handle: RePEc:pen:papers:10-029

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Keywords: Trade Specialization Indices; Development Theory; Developing Country Export Compositions; International Trade Theory; Trade in Manufactures; Trade and Transformation.;

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  1. Vollrath, Thomas L. & Johnston, Paul V., 1991. "The Influence of the Commodity Composition of Trade on Economic Growth," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
  2. Claro, Sebastian, 2008. "FDI Liberalization as a Source of Comparative Advantage in China," Working Paper Series RP2008/91, World Institute for Development Economic Research (UNU-WIDER).
  3. Christopher Balding, 2010. "Joining the World Trade Organization: What is the Impact?," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 193-206, 02.
  4. Iordanis Petsas, 2010. "Sustained Comparative Advantage and Semi-Endogenous Growth," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 34-47, 02.
  5. Irving B. Kravis & Robert E. Lipsey & Dennis M. Bushe, 1980. "Prices and Market Shares in the International Machinery Trade," NBER Working Papers 0521, National Bureau of Economic Research, Inc.
  6. Irving B. Kravis & Robert E. Lipsey, 1971. "Price Competitiveness in World Trade," NBER Books, National Bureau of Economic Research, Inc, number krav71-1, octubre-d.
  7. Joshua Aizenman & Jaewoo Lee, 2010. "Real Exchange Rate, Mercantilism And The Learning By Doing Externality," Pacific Economic Review, Wiley Blackwell, vol. 15(3), pages 324-335, 08.
  8. Kazunobu Hayakawa, 2007. "Growth Of Intermediate Goods Trade In East Asia," Pacific Economic Review, Wiley Blackwell, vol. 12(4), pages 511-523, October.
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