International specialisation in production via thedevelopment of international trade and factormovements is the basis of much of the developedworlds prosperity. This article is concerned withthe forces that drive specialisation inmanufacturing in the developed countries, andparticularly the role played by regional economicintegration in the European Community. Adistinction is drawn between specialisation thattakes place within intra and between interindustries with emphasis here on the latter.Specifically, the analysis seeks to explaindifferences in the sectoral composition of industrybetween pairs of countries using regressionanalysis. Factor endowments, per capita incomesand country size are found to influence industrialsimilarity. Membership of the EC and participationin the ECEFTA free trade areas are associatedwith increased interindustry specialisation.Movement towards a European Economic Spacecould accentuate this phenomenon, withimportant adjustment implications.
International Journal of Manpower – Emerald Publishing
Published: Feb 1, 1991
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