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The Dynamics of European Industrial Structure

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  • Gustavsson, Patrik

    (Trade Union Institute for Economic Research)

Abstract

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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  • Gustavsson, Patrik, 2002. "The Dynamics of European Industrial Structure," Working Paper Series 176, Trade Union Institute for Economic Research.
    • Handle: RePEc:hhs:fiefwp:0176
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    More about this item

    Keywords

    Specialisation; Productivity; Trade; Technology; Technology transfers; R&D;
    All these keywords.

    JEL classification:

    • C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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