The Dynamics of European Industrial Structure

Patrik Gustavsson
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Patrik Gustavsson: Trade Union Institute for Economic Research, Postal: FIEF, Wallingatan 38, SE-111 24 Stockholm, Sweden

No 176, Working Paper Series from 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.

Keywords: Specialisation; Productivity; Trade; Technology; Technology transfers; R&D (search for similar items in EconPapers)
JEL-codes: C29 F12 O33 O52 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2002-05-03
New Economics Papers: this item is included in nep-eec and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:fiefwp:0176

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