@TechReport{iza:izadps:dp7765,
            	author={Batista, Catia and Potin, Jacques},
            	title={Stages of Diversification in a Neoclassical World},
            	year={2013},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={7765},
            	url={https://www.iza.org/publications/dp7765},
	abstract={Recent research has documented a U-shaped industrial concentration curve over an economy's development path. How far can neoclassical trade theory take us in explaining this pattern? We estimate the production side of the Heckscher-Ohlin model using industry data on 44 developed and developing countries for the period 1976-2000. Decomposing the implied changes in industrial concentration over time shows that at least one third of these changes seems to be explained by a Rybczynski effect. This result suggests that capital accumulation led poor countries to diversify their industrial production, while rich countries made their production more concentrated in highly capital-intensive industries.},
	keywords={specialization;diversification;Heckscher-Ohlin;economic growth and international trade;industrial concentration;structural change},
            }