Dynamics of Trade Specialization in Developed and Less Developed Countries

The comparison of revealed comparative advantages for six regions (Organization for Economic Cooperation and Development [OECD] north and south, South and East Asia, Latin America, Central and Eastern Europe) and four skill types (from low- to high-skill-intensive industries) over the years 1981 to 1997 draws a clear picture of differentiation in industrial trade patterns, which has changed quantitatively but not qualitatively over time. There is a clear distinction between the trade patterns of advanced OECD countries and all other regions in the sample with respect to skill intensity of export industries. Two related trends dominate the picture: a trend toward convergence and a trend toward despecialization. Although similar to what has been previously observed for relatively homogenous groups of countries, it is surprising to also find these trends in this larger and more heterogeneous sample.