ABSTRACT
Despite its obvious importance and relevance for economic performance in general, the basis of the overall pattern of specialisation in UK trade is seldom discussed. This chapter adds to what is known by examining the pattern of specialisation in UK manufacturing trade according to ‘vertical’ differences in quality-i.e. differences in the quality of goods which result from a superior set of characteristics.2 Such differences may reflect a more innovative product or one which makes the greater use of skilled labour.
