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Room to Move: Why Some Industries Drive the Trade-Specialization Nexus and Others Do Not

In: Advances in Efficiency and Productivity Analysis

Author

Listed:
  • Jaap W. B. Bos

    (School of Business and Economics)

  • Lu Zhang

    (Netherlands Central Bank)

Abstract

We investigate which industries drive the trade-specialization nexus in the European Union over the 1997–2006 period. We study the impact of the reallocation of resources within industries. We find that the true drivers of the trade-specialization nexus are productive firms, who benefit from the increase in trade openness by appropriating resources from less productive firms, coinciding with the expansion of the industry in which they operate, at the expense of other industries, in which there is no room to make such moves.

Suggested Citation

  • Jaap W. B. Bos & Lu Zhang, 2021. "Room to Move: Why Some Industries Drive the Trade-Specialization Nexus and Others Do Not," Springer Proceedings in Business and Economics, in: Christopher F. Parmeter & Robin C. Sickles (ed.), Advances in Efficiency and Productivity Analysis, pages 265-301, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-47106-4_12
    DOI: 10.1007/978-3-030-47106-4_12
    as

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