Redding, Stephen and Vera-Martin, Mercedes (2001) Factor endowments and production in European regions. 501. Centre for Economic Performance, London School of Economics and Political Science, London, UK.
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This paper analyses patterns of production across 14 industries in 45 regions from 7 European countries since 1975. We estimate a structural equation derived directly from Heckscher- Ohlin theory that relates an industry’s share of a region’s GDP to factor endowments and relative prices. Factor endowments are found to play a statistically significant and quantitatively important role in explaining production patterns. The explanation is most successful for aggregate industries, such as Agriculture, Manufacturing, and Services, and works less well for disaggregated industries within Manufacturing. We find no evidence that increasing European integration has weakened the relationship between factor endowments and production patterns within countries.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 2001 Stephen Redding and Mercedes Vera-Martin|
|Uncontrolled Keywords:||Factor Endowments, Heckscher-Ohlin, specialization, European integration|
|Library of Congress subject classification:||H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
|Journal of Economic Literature Classification System:||F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
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