chapter  10
4 Pages

A retrospective view

Previous chapters have reported on a wide range of findings. An empirical examination of mainstream models suggests the existence of a set of ‘core’ determinants which govern patterns of specialization and trade. The strength of these determinants varies depending on whether inter-industry or intra-industry aspects are being considered and on the degree of similarity between trading partners. National differences in relative factor abundance have a perceptible impact on net trade and inter-industry specialization which partly conforms with the spirit of the factor abundance theory. Similarities between countries impact specialization and trade when intra-industry trends are examined.