DP2287 The Dynamics of International Specialization
|Author(s):||Stephen J. Redding|
|Publication Date:||November 1999|
|Keyword(s):||Distribution Dynamics, Factor Endowments, International Trade, Neoclassical Model|
|JEL(s):||C14, F11, F14|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=2287|
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.