Authors: Edward N. Wolff
Addresses: Professor of Economics, Department of Economics, 269 Mercer Street, Room 700, New York University, New York, NY 10003,USA
Abstract: I use the 1994 OECD Structural Analysis database, which provides statistics on output for 33 manufacturing industries in 14 OECD countries over the period 1970 to 1993. I find that in 1970, these countries tended to specialise manufacturing production in very different industries and that most countries retained their specialisation between 1970 and 1993. I conclude that the general stability in industries of specialisation over time lends support to the increasing internal returns to scale models and tends to contradict the standard factor-price equalisation models. The results of this paper also suggest that increasing internal returns to scale and learning-by-doing may serve as a complement to patent protection and other forms of intellectual property rights.
Keywords: specialisation; comparative advantage; increasing internal returns to scale.
International Journal of Technology Management, 2000 Vol.19 No.1/2, pp.194-205
Published online: 07 Jul 2003 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article