Discussion Paper Details

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Title: The Dynamics of International Specialization

Author(s): Stephen J. Redding

Publication Date: November 1999

Keyword(s): Distribution Dynamics, Factor Endowments, International Trade and Neoclassical Model

Programme Area(s): International Trade and Regional Economics

Abstract: The theoretical literature on trade and growth suggests that comparative advantage is endogenous and evolves over time. However, most of the empirical analysis of international trade flows is essentially static in nature. This paper proposes an empirical model of the dynamics of international specialisation. Employing disaggregated data on twenty industries in seven OECD countries, we examine the evolution of patterns of international specialisation over time and evaluate the role of changes in factor endowments in explaining observed dynamics.

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Bibliographic Reference

Redding, S. 1999. 'The Dynamics of International Specialization'. London, Centre for Economic Policy Research.