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Evolving patterns of international trade

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  • Proudman, James
  • Redding, Stephen

Abstract

Theoretical models of growth and trade suggest that patterns of international specialization are dynamic and evolve endogenously over time. Initial comparative advantages are either reinforced or gradually unwound with the passage of time. This paper puts forward an empirical framework for modeling international trade dynamics that uses techniques widely employed in the cross-country literature on income convergence. On applying this framework to industry-level data, evidence is found for significant differences in international trade dynamics among the G-5 economies.

Suggested Citation

  • Proudman, James & Redding, Stephen, 2000. "Evolving patterns of international trade," LSE Research Online Documents on Economics 206, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:206
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    File URL: http://eprints.lse.ac.uk/206/
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    Keywords

    Distribution dynamics; international trade; Markov chains; revealed comparative advantage.;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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