Two types of pattern of specialization of the economic environment of a highly industrialized country in Western Europe

Conclusions The specific pattern of specialization of highly industrialized countries is closely linked to factor endowments, although the correlation coefficients are probably positively biased, because the products have not been weighted with their market shares. The correlation between this pattern and market growth is much weaker. Because of the balance of payments constraint, all countries show products with net exports and with net imports. The shape of the country specific frequency distribution, determined by the specialization coefficients of the products (here called general pattern of specialization), can largely be explained by the country's size, prosperity, and possible EC membership. This general pattern can be regarded as a country specific constraint to its specific pattern. The statistical results of all sections lead to conclusions concerning economic policy.This paper is a summary which focuses on the main conclusions. The complete report, including all empirical results, the comments by the discussant E. Dalgaard (Denmark), references and most data, can be obtained from the Central Planning Bureau. Jeannette Verbruggen carried out the computations. Comments by C. A. Burk, J. G. van Beeck, E. Dalgaard, H. den Hartog, and A. Kusters have been incorporated.