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The Dynamics of International Trade Patterns

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  • Paulo Bastos
  • Manuel Cabral

Abstract

This paper introduces new dynamic measures for examining changes in international trade patterns. Using data for 20 OECD countries over the 1980-2000 period, we show that inter-industry trade changes contrary to countries' previous specialisation are frequently the dominant form of trade expansion. The econometric analysis indicates that the observed changes in trade patterns were explained by initial endowments of human-capital and industry-specific changes in labour productivity and labour costs. The results also suggest that trade liberalisation induced an increase in the previous specialisation of larger OECD economies in industries with increasing returns to scale.
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Suggested Citation

  • Paulo Bastos & Manuel Cabral, 2007. "The Dynamics of International Trade Patterns," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(3), pages 391-415, October.
    • Handle: RePEc:spr:weltar:v:143:y:2007:i:3:p:391-415
    DOI: 10.1007/s10290-007-0114-z
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    4. Becuwe, Stéphane & Blancheton, Bertrand & Meissner, Christopher M., 2021. "The French (Trade) Revolution of 1860: Intra-Industry Trade and Smooth Adjustment," The Journal of Economic History, Cambridge University Press, vol. 81(3), pages 688-722, September.
    5. Jorge Braga de Macedo & Luís Brites Pereira, 2014. "Cape Verde and Mozambique as Development Successes in West and Southern Africa," NBER Chapters, in: African Successes, Volume IV: Sustainable Growth, pages 203-293, National Bureau of Economic Research, Inc.
    6. Phan, Thanh Hoan & Jeong, Ji Young, 2012. "An Analysis of Korea-Vietnam Bilateral Trade Relation," MPRA Paper 48312, University Library of Munich, Germany.
    7. Oana Ancuta Stangaciu, 2013. "The Regional Assessment Of Marginal Intra-Industry Specialization," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 18.
    8. Tang, Donny, 2016. "Has the Financial Integration affected the European Union (EU) trade with the New Member Countries from Central and Eastern Europe (CEEC) during 1994–2013?," The Journal of Economic Asymmetries, Elsevier, vol. 13(C), pages 8-20.
    9. Oana Ancuta STANGACIU & Eugenia HARJA, 2013. "Testing The Models Of Regional Specialization In Terms Of New Theories Of International Trade," Romanian Statistical Review, Romanian Statistical Review, vol. 61(2), pages 16-28, March.
    10. Astrid KRENZ & Gerhard RÜBEL, 2009. "Explaining Industrial Localization and Countries´ Specialization in the European Union: An Empirical Investigation," EcoMod2009 21500056, EcoMod.
    11. Manuel Cabral & Joana Silva, 2006. "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 496-520, October.

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