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THE EVOLUTION OF PRODUCTIVITY GAPS AND SPECIALIZATION PATTERNS
Author(s) -
Los Bart,
Verspagen Bart
Publication year - 2006
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2006.00252.x
Subject(s) - productivity , economics , convergence (economics) , endogenous growth theory , consumption (sociology) , range (aeronautics) , balance of payments , economic geography , balance (ability) , industrial organization , aggregate (composite) , microeconomics , econometrics , macroeconomics , human capital , market economy , medicine , social science , materials science , sociology , composite material , physical medicine and rehabilitation
This paper presents an industry‐level model of growth and trade, in which evolving specialization patterns are the endogenous result of innovation, international technology spillovers, learning‐by‐doing and balance of payments‐restricted growth. Differences between industries with regard to their share in consumption are shown to reinforce or mitigate the effects of specialization on aggregate productivity convergence patterns, depending on other parameters. The implications of the model are studied by means of simulation analyses for a wide range of parameter configurations.