Technology and international specialization

Abstract

In this paper the authors reconsider the cross-section analyses of international specialisation. Starting from a criticism of the methodology currently adopted in these exercises, the relationship between supply characteristics and trade performance of different goods is analysed by sub-system, or vertically integrated sector, instead of traditional methods. This procedure allows to take into consideration the interdependence between industries and final goods and to correctly attribute to each good the corresponding supply characteristics. In light of the results, a reappraisal of some characteristics of Italian specialisation is provided. JEL: O14, L16

Keywords

• International specialisation
• industry interdependence
• Italy