Room to Move: Why Some Industries Drive the Trade-Specialization Nexus and Others Do Not

Jaap W. B. Bos () and Lu Zhang ()
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Jaap W. B. Bos: School of Business and Economics
Lu Zhang: Netherlands Central Bank

A chapter in Advances in Efficiency and Productivity Analysis, 2021, pp 265-301 from Springer

Abstract: Abstract We investigate which industries drive the trade-specialization nexus in the European Union over the 1997–2006 period. We study the impact of the reallocation of resources within industries. We find that the true drivers of the trade-specialization nexus are productive firms, who benefit from the increase in trade openness by appropriating resources from less productive firms, coinciding with the expansion of the industry in which they operate, at the expense of other industries, in which there is no room to make such moves.

Keywords: Trade barriers; Latent class model; Gravity model (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-47106-4_12

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DOI: 10.1007/978-3-030-47106-4_12

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