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The Revealed Comparative Advantages of Dutch Cities

Author

Listed:
  • Tijl Hendrich

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Jennifer Buurma-Olsen

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Steven Brakman

    (RUG)

  • Charles van Marrewijk

Abstract

The trade literature often treats countries as dimensionless points, which is a strong assumption. Agglomeration or lumpiness of production factors within countries can affect the national pattern of trade. In this paper we analyze comparative advantage patterns for 22 cities and 4 regions for (a selection of) 83 sectors within The Netherlands. Our findings are as follows. First, analysis of the lens condition indicates that the regional concentration of production factors (lumpiness) does not affect the Dutch national trade pattern. Second, despite the fact that the lens condition is verified, comparative advantage patterns across locations differ significantly from each other. Third, the differences across locations of comparative advantage patterns is explained by the interaction of local skill-abundance and sector skill-intensity, in line with the predictions of the factor abundance model.

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  • Tijl Hendrich & Jennifer Buurma-Olsen & Steven Brakman & Charles van Marrewijk, 2021. "The Revealed Comparative Advantages of Dutch Cities," CPB Discussion Paper 418, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:418
    DOI: 10.34932/c0nk-mg41
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    Cited by:

    1. Tijl Hendrich & Jennifer Buurma-Olsen & Judith Bayer, 2022. "Entries and Regional Growth: The Role of Relatedness," CPB Discussion Paper 433, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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