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The Dynamics of European Industrial Structure

  • Gustavsson, Patrik

    (Trade Union Institute for Economic Research)

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    Has the European integration process lead to increased specialisation and what drives changes in specialisation? To address these questions we apply a model that incorporates endowments, technology and increasing returns to scale (IRS). Analyses reveal that countries with high capital accumulation have become increasingly specialised in capital-intensive industries; this holds for both human and physical capital while countries have diverged (converged) in physical (human) capital abundance. No increased concentration of IRS industries to large markets is found. Analysing R&D indicates scale economies in R&D at the firm level and that firm level R&D is what drives competitiveness. Finally, there is robust evidence for a domestic interdependency in industries specialisation patterns.

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    File URL: http://swopec.hhs.se/fiefwp/papers/WP176.pdf
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    Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 176.

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    Length: 40 pages
    Date of creation: 03 May 2002
    Handle: RePEc:hhs:fiefwp:0176
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