TY  - JOUR
AU  - Fitzgerald,Doireann
AU  - Hallak,Juan Carlos
TI  - Specialization, Factor Accumulation and Development
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10638
PY  - 2004
Y2  - July 2004
UR  - http://www.nber.org/papers/w10638
L1  - http://www.nber.org/papers/w10638.pdf
N1  - Author contact info:
Doireann Fitzgerald
Department of Economics
Stanford University
579 Serra Mall
Stanford, CA 94305
Tel: 650/724-1427
Fax: 650/725-5702
E-Mail: doireann.fitzgerald@gmail.com

Juan Carlos Hallak
Universidad de San Andrés
Departamento de Economía
Vito Dumas 284 (B1644BID)
Victoria, Provincia de Buenos Aires
ARGENTINA
Tel: (5411) 4725-7081
Fax: (5411) 4725-7010
E-Mail: jchallak@udesa.edu.ar
AB  - We estimate the effect of factor proportions on the pattern of manufacturing specialization in a cross-section of OECD countries, taking into account that factor accumulation responds to productivity. We show that the failure to control for productivity differences produces biased estimates. Our model explains 2/3 of the observed differences in the pattern of specialization between the poorest and richest OECD countries. However, because factor proportions and the pattern of specialization co-move in the development process, their strong empirical relationship is not sufficient to determine whether specialization is driven by factor proportions, or by other mechanisms also correlated with level of development.
ER  -