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Specialization dynamics

  • Redding, Stephen

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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Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 58 (2002)
Issue (Month): 2 (December)
Pages: 299-334

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Handle: RePEc:eee:inecon:v:58:y:2002:i:2:p:299-334
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