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Specialization and openness to foreign trade in the European Union

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  • Elisa Alvarez Lopez
  • Rafael Myro Sanchez

Abstract

This study explores the relations between inter-industry specialization and openness to foreign competition in the European countries. By controlling for other variables influencing specialization, the study found a negative relationship between openness and inter-industry specialization, meaning that the closer the countries become in their degree of openness to trade, the closer are their industrial structures, as is expected from the Hecksher-Olhin-Vanek framework with equalization of factor prices. Nevertheless, control variables powerful influence specialization, claiming for a more complete theoretical framework.

Suggested Citation

  • Elisa Alvarez Lopez & Rafael Myro Sanchez, 2005. "Specialization and openness to foreign trade in the European Union," Applied Economics Letters, Taylor & Francis Journals, vol. 12(13), pages 805-810.
    • Handle: RePEc:taf:apeclt:v:12:y:2005:i:13:p:805-810
    DOI: 10.1080/13504850500363579
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