%0 Report
        %A Batista, Catia
%A Potin, Jacques
        %T Stages of Diversification in a Neoclassical World
        %D 2013
        %8 2013 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 7765
        %U https://www.iza.org/publications/dp7765
        %X 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.
        %K specialization
%K diversification
%K Heckscher-Ohlin
%K economic growth and international trade
%K industrial concentration
%K structural change