The Evolution of Productivity Gaps and Specialization Patterns

30 Pages Posted: 13 Nov 2006

See all articles by Bart Los

Bart Los

University of Groningen - Faculty of Economics

Bart Verspagen

Eindhoven University of Technology (TUE)

Abstract

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.

Suggested Citation

Los, Bart and Verspagen, Bart, The Evolution of Productivity Gaps and Specialization Patterns. Metroeconomica, Vol. 57, No. 4, pp. 464-493, November 2006, Available at SSRN: https://ssrn.com/abstract=944269 or http://dx.doi.org/10.1111/j.1467-999X.2006.00252.x

Bart Los (Contact Author)

University of Groningen - Faculty of Economics ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 (0)50 3637317 (Phone)

Bart Verspagen

Eindhoven University of Technology (TUE) ( email )

PO Box 513
Eindhoven, 5600 MB
Netherlands

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