European Business Schools Librarian's Group
ESSEC Working Papers,
ESSEC Research Center, ESSEC Business School
No DR 08001: International Specialization and the Return to Capital, 1976-2000
Catia Batista () and Jacques Potin ()
Additional contact information
Catia Batista: University of Oxford, Postal: High Street, Oxford City Centre, OXFORD, OX1 4AL, UNITED KINGDOM
Jacques Potin: ESSEC Business School, Postal: Avenue Bernard Hirsch - B.P. 50105, 95021 CERGY-PONTOISE Cedex , FRANCE,
Abstract: Using panel data, we provide an integrated treatment of factor endowments, factor prices, and international specialization. In the various cross sections, we confirm the Heckscher-Ohlin prediction that, with sufficient differences in country endowments, there is no factor Price equalization and countries specialize in different subsets of goods. We also explain why, despite higher returns to capital, poor countries do not attract more capital from rich countries. Moreover, along their development path, countries experience the structural change predicted by theory. We find that these changes in specialization mainly occur within industries. Despite capital accumulation by most countries, we find no decrease in the return to capital at any given capital-labour ratio. This must have facilitated growth through capital accumulation
Keywords: Economic Growth and International Trade; Heckscher-Ohlin; Multiple Cones; Marginal Product of Capital; Specialization
50 pages, January 2008
Full text files
showDeclFileRes.do?declId=7598&key=__workpaper__
Questions (including download problems) about the papers in this series should be directed to Sophie Magnanou ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:ebg:essewp:dr-08001This page generated on 2024-10-19 15:41:33.