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Employment and Export Specialization Patterns versus GDP Per Capita Performance - Unifying Approach

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  • Aleksandra PARTEKA

    (Universit… Politecnica delle Marche, Dipartimento di Economia)

Abstract

The underneath motivation of this study is based on the findings confirming that specialisation is non neutral on a country's growth performance. Consequently, it seems important to analyse the evolution of specialization patterns along the process of economic development. The scope of the paper is twofold: first of all, it aims at understanding if the evolution of employment specialisation is reflected in the same manner in trade specialisation patterns. Secondly, it explores the link between the degree of specialization on one side and cross country GDP per capita performance on the other. The paper challenges other empirical studies present in the specialization literature and contributes by presenting simultaneously the evolution of sectoral dispersion patterns emerging from employment and trade data. The sample of countries (32 world economies on different stages of economic development), the time span (1980 onwards) and the sectoral composition of the two datasets are retained constant. By comparing the results obtained with various inequality indicators, including a wide range of absolute and relative measures, we demonstrate the relevance of the methodological setting used for the assessment of economic activity dispersion. Next, we perform nonparametric and semiparametric estimations in order to reveal the `specialization curve' which describes the evolution of specialization along the development path. We find a support for nonlinear relationship between the two dimensions of specialization and GDP per capita levels, with a tendency towards despecialization in the initial phase of economic growth.

Suggested Citation

  • Aleksandra PARTEKA, 2007. "Employment and Export Specialization Patterns versus GDP Per Capita Performance - Unifying Approach," Working Papers 302, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:302
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    References listed on IDEAS

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    Cited by:

    1. Karsten Mau, 2016. "Export diversification and income differences reconsidered: The extensive product margin in theory and application," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 351-381, May.
    2. Ugo FRATESI, 2010. "The National and International Effects;of Regional Policy Choices: Agglomeration Economies, Peripherality and Territorial Characteristics," Working Papers 344, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Jorge Braga de Macedo & Luís Brites Pereira, 2014. "Cape Verde and Mozambique as Development Successes in West and Southern Africa," NBER Chapters,in: African Successes, Volume IV: Sustainable Growth, pages 203-293 National Bureau of Economic Research, Inc.
    4. Chris Papageorgiou & Christopher F. Parmeter, 2015. "Export Diversification: Is There Anything to the Hump?," Working Papers 2015-02, University of Miami, Department of Economics.
    5. Parteka, Aleksandra & Tamberi, Massimo, 2013. "Product diversification, relative specialisation and economic development: Import–export analysis," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 121-135.
    6. Luca RICCETTI, 2010. "Minimum Tracking Error Volatility," Working Papers 340, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    7. repec:bla:germec:v:19:y:2018:i:1:p:74-93 is not listed on IDEAS
    8. Aleksandra Parteka, 2013. "The evolving structure of Polish exports (1994−2010) – diversification of products and trade partners," Bank i Kredyt, Narodowy Bank Polski, vol. 44(5), pages 435-466.
    9. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2013. "Trade Diversification, Income, And Growth: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 790-812, September.
    10. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2014. "OECD imports: diversification of suppliers and quality search," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 1-24, February.
    11. Oasis Kodila†Tedika & Simplice A. Asongu, 2018. "Does Intelligence Affect Economic Diversification?," German Economic Review, Verein für Socialpolitik, vol. 19(1), pages 74-93, February.
    12. repec:kap:empiri:v:45:y:2018:i:2:d:10.1007_s10663-016-9362-2 is not listed on IDEAS
    13. Roberto Basile & Aleksandra Parteka & Rosanna Pittiglio, 2015. "Export diversification and economic development: a dynamic spatial data analysis," Gecomplexity Discussion Paper Series 15, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Dec 2015.
    14. Luca RICCETTI, 2011. "A Copula-GARCH Model for Macro Asset Allocation of a Portfolio with Commodities: an Out-of-Sample Analysis," Working Papers 355, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    15. Aleksandra Parteka & Massimo Tamberi, 2013. "What Determines Export Diversification in the Development Process? Empirical Assessment," The World Economy, Wiley Blackwell, vol. 36(6), pages 807-826, June.
    16. Aleksandra Parteka, 2012. "Trade Diversity and Stages of Development–Evidence on EU Countries," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 30.
    17. repec:eee:wdevel:v:102:y:2018:i:c:p:90-110 is not listed on IDEAS
    18. Fabio FIORILLO & Agnese SACCHI, 2010. "I Want to Free-ride. An Opportunistic View on Decentralization Versus Centralization Problem," Working Papers 346, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    19. Elena AMBROSETTI & Eralba CELA & Tineke FOKKEMA, 2011. "The Remittances Behaviour of the Second Generation in Europe: Altruism or Self-Interest?," Working Papers 368, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    20. repec:sgh:gosnar:y:2017:i:2:p:5-27 is not listed on IDEAS
    21. Giray Gozgor & Muhlis Can, 2016. "Effects of the product diversification of exports on income at different stages of economic development," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 215-235, August.
    22. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.

    More about this item

    Keywords

    comparative advantage; industrial specialisation; trade specialisation;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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