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Persistence and Mobility in International Trade

Author

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  • Proudman, James
  • Redding, Stephen J.

Abstract

The theoretical literature on endogenous growth and international trade suggests that comparative advantage is endogenous. Sector-specific learning by doing and technology transfer respectively provide reasons why initial patterns of international specialization may persist or exhibit mobility over time. This paper evaluates the extent of persistence or mobility in trade in manufactured goods in Germany and the United Kingdom for the period 1970–93. A measure of the extent of specialization is presented and its evolution over time modelled as a sequence of cross-section distributions. Evidence of considerable mobility is found, with the degree of mobility in the United Kingdom exceeding that in Germany.

Suggested Citation

  • Proudman, James & Redding, Stephen J., 1998. "Persistence and Mobility in International Trade," CEPR Discussion Papers 1802, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1802
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    Citations

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    Cited by:

    1. Stephen Redding & Mercedes Vera-Martin, 2006. "Factor Endowments and Production in European Regions," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 1-32, April.
    2. Jeroen Hinloopen & Charles Marrewijk, 2001. "On the empirical distribution of the Balassa index," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 1-35, March.
    3. Maria Luisa Mancusi, 2000. "The Dynamics of Technology in Industrial Countries," KITeS Working Papers 118, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2000.
    4. Joaquin Andaluz & Luis Fernando Lanaspa & Fernando Sanz, 2002. "Geographical Dynamics: A Sectoral Comparison Between the Economic Landscapes of the United States and Europe," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 321-332.
    5. Paolo Guerrieri & Simona Iammarino, 2003. "The Dynamics of Export Specialisation in the Regions of the Italian Mezzogiorno: Persistence and Change," SPRU Working Paper Series 105, SPRU - Science and Technology Policy Research, University of Sussex.
    6. Redding, Stephen, 2002. "Specialization dynamics," Journal of International Economics, Elsevier, vol. 58(2), pages 299-334, December.
    7. Paolo Guerrieri & Simona Iammarino, 2007. "Dynamics of Export Specialization in the Regions of the Italian Mezzogiorno: Persistence and Change," Regional Studies, Taylor & Francis Journals, vol. 41(7), pages 933-948.
    8. Gavin Cameron & James Proudman & Stephen Redding, 1997. "Deconstructing Growth in UK Manufacturing," Bank of England working papers 73, Bank of England.
    9. Andrea Brasili & Paolo Epifani & Rodolfo Helg, 1999. "On the dynamics of trade patterns," LIUC Papers in Economics 61, Cattaneo University (LIUC).
    10. J. David Richardson & Chi Zhang, 1999. "Revealing Comparative Advantage: Chaotic or Coherent Patterns Across Time and Sector and U.S. Trading Partner?," NBER Working Papers 7212, National Bureau of Economic Research, Inc.
    11. Maria Luisa Mancusi, 2003. "Geographical concentration and the dynamics of countries' specialization in technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(3), pages 269-291.
    12. João Amador & Sónia Cabral & José R. Maria, 2007. "International Trade Patterns over the Last Four Decades: How does Portugal Compare with other Cohesion Countries?," Working Papers w200714, Banco de Portugal, Economics and Research Department.

    More about this item

    Keywords

    Distribution Dynamics; International Trade; Learning by Doing; Markov chains; revealed comparative advantage; Technological Change;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • F10 - International Economics - - Trade - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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