Hostname: page-component-77c89778f8-fv566 Total loading time: 0 Render date: 2024-07-17T01:05:33.637Z Has data issue: false hasContentIssue false

Can Variation in Public Policies Account for Differences in Comparative Advantage?

Published online by Cambridge University Press:  24 February 2006

MATTHEW ALLEN
Affiliation:
Business School, Manchester Metropolitan University
LOTHAR FUNK
Affiliation:
Economics, Düsseldorf University of Applied Sciences
HEINZ TÜSELMANN
Affiliation:
Business School, Manchester Metropolitan University

Abstract

This article seeks light on the main claim of the Varieties of Capitalism (VoC) framework that public policies can help to shape comparative advantage, and, to complement existing assessments that have relied predominantly on qualitative data from a few economic sectors. It examines the distribution of export success in a number of economic sectors, in which competitiveness is characterized by either radical or incremental innovation. Unlike previous studies, it does this across all those OECD countries clearly identified in the VoC literature as either liberal market economies, co-ordinated market economies or unclassified. Moreover, it draws on the latest available data at the lowest level of aggregation. In contrast to previous studies, a more appropriate measure of trade specialization, revealed symmetric comparative advantage, is used. Overall, the evidence supports the VoC framework; however, in some sectors, the data raise important conceptual and methodological issues overlooked in current research.

Type
Research Article
Copyright
2006 Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)