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Specialization dynamics

  • Stephen Redding

This paper proposes a new empirical framework for analyzing specialization dynamics. A country’s pattern of specialization is viewed as a distribution across sectors, and statistical techniques for analyzing the evolution of this entire distribution are employed. The empirical framework is implemented using data on 20 industries in 7 OECD countries since 1970. We find substantial mobility in patterns of specialization. Over time horizons of 5 years, this is largely explained by forces common across countries including world prices and common changes in technical efficiency. Over longer time horizons, country-specific changes in factor endowments become more important. There is no evidence of an increase in countries’ overall degree of specialization.

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File URL: http://eprints.lse.ac.uk/210/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 210.

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Date of creation: Dec 2002
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Publication status: Published in Journal of International Economics, December, 2002, 58(2), pp. 299-334. ISSN: 0022-1996
Handle: RePEc:ehl:lserod:210
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