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N° 2001 - 13 |
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| December |
| The Nature of Specialization Matters for
Growth: an Empirical Investigation |
Isabelle
Bensidoun
Guillaume Gaulier
Deniz Ünal |
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| Modern international trade theories show
that the nature of the specialization of a country is non-neutral on its growth
performances. However, most empirical studies concentrate on the relation between
growth and trade openness at the macroeconomic level, i.e. without taking into
account potential specialization effects. A rough examination of the data suggests
that the growth performance of economies is not independent of their pattern of
international specialization. After having illustrated this point, we show that
the link between the nature of specialization and growth suggested by the data
remains when other factors influencing growth are taken into account. Our results
do provide strong evidence that the growth effects of international integration
depend on the type of products countries are specialized in. In these circumstances,
temporary protectionist measures that induce an economy to specialize in a growth-engine
sector where it currently lacks comparative advantage should be preferred to openness,
if long-term growth is at stake. |
Abstract |
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| Growth, openness, trade specialization, generalized
method of moments |
Keywords |
| C33, F1, O41 |
JEL classification |
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