Technology, Production Factors and Specialization: New Evidence

The IUP Journal of Applied Economics, Vol. 8, Nos. 5 & 6, pp. 128-141, September & November 2009

Posted: 20 Oct 2009

See all articles by Tiago Neves Sequeira

Tiago Neves Sequeira

University of the Interior of Beira - Faculty of Social Sciences and Humanities; New University of Lisbon - Faculdade de Economia

Date Written: October 14, 2009

Abstract

This paper presents new evidence concerning the relationship between relative factor endowments, productivity and specialization. Using a recently developed dynamic panel data fixed effects estimator, the study evaluates the effect of factor endowments in comparison to the effect of productivity on specialization in different sectors of the economy. The study reveals that productivity has more influence in determining industrial specialization than factor endowment. The study concludes that on average, a developing country’s machinery sector benefits from investment in capital accumulation and technology.

Suggested Citation

Neves Sequeira, Tiago, Technology, Production Factors and Specialization: New Evidence (October 14, 2009). The IUP Journal of Applied Economics, Vol. 8, Nos. 5 & 6, pp. 128-141, September & November 2009, Available at SSRN: https://ssrn.com/abstract=1488701

Tiago Neves Sequeira (Contact Author)

University of the Interior of Beira - Faculty of Social Sciences and Humanities ( email )

6200-209 Covilha
Portugal

New University of Lisbon - Faculdade de Economia ( email )

Campus de Campolide
Lisboa, 1099-032
Portugal

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