Specialization patterns in Europe

Specialization Patterns in Europe. - This paper analyzes whether specialization has increased in European Union countries, and discusses whether specialization patterns are consistent with predictions of trade theory. There is evidence of increasing specialization in some EU countries between 1968 and 1990, and some industries have become more concentrated geographically. The observed pattern of specialization broadly follows trade theory. In particular those industries that have becomemore concentrated geographically are characterized by high scale economies and high intermediate-goods intensity, providing some support for new trade theories. JEL no. F14,F19,L60.