Template-type: ReDif-Paper 1.0
Author-Name: Bos Jaap W.B. 
Author-Name: Economidou Claire 
Author-Name: Zhang Lu 
Author-workplace-name: METEOR
Title: Specialization in the Presence of Trade and Financial Integration: Explorations of the Integration-Specialization Nexus
Abstract: In this paper we investigate the economic integration - industrial specialization nexus and unravel the relationship between trade and financial openness and industrial specialization. For a panel of 31 countries over the period 1970 to 2005, we find that trade integration relates negatively to specialization, while financial integration relates positively tospecialization. Furthermore, the relationship between trade (financial) integration and specialization is further deepened by the level of financial (trade) integration. Lastly, trade integration has a stronger connection to industrial specialization in countries with a high degree of intra-industry trade, whereas financial integration has a stronger connectionto specialization in countries with a relatively underdeveloped financial system. Our findings are robust to various measures and alternative model specifications.
Keywords: financial economics and financial management ; 
Series: Research Memoranda
Creation-Date: 2011
Number: 026
File-URL: http://arnop.unimaas.nl/show.cgi?fid=21629
File-Format: application/pdf
File-Size: 569184
Handle: RePEc:unm:umamet:2011026