Factor Endowments and Production in European Regions

Stephen Redding and Mercedes Vera-Martin

No 3755, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper analyses patterns of production across 14 industries in 45 regions from seven European countries since 1975. We estimate a structural equation derived directly from neoclassical trade theory that relates an industry?s share of a region?s GDP to factor endowments, relative prices and technology. Although factor endowments play a statistically significant and quantitatively important role in explaining production patterns, the Heckscher-Ohlin model is rejected against more general alternatives that allow for regional variation in relative prices and technology. Factor endowments are more successful at explaining patterns of production in aggregate industries (Agriculture, Manufacturing, Services) than in disaggregated industries within Manufacturing.

Keywords: Factor endowments; Heckscher-ohlin; Neoclassical model; Specialization; European integration (search for similar items in EconPapers)
JEL-codes: F11 F14 R13 (search for similar items in EconPapers)
Date: 2003-02
New Economics Papers: this item is included in nep-eec and nep-geo
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP3755 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Factor Endowments and Production in European Regions (2006)
Working Paper: Factor Endowments and Production in European Regions (2001)
Working Paper: Factor endowments and production in European regions (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:3755

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP3755

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().