KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Scale and Scope - human capital and the structure of regional export flows
() and Sara Johansson
Abstract: This paper presents an empirical analysis of the
relationship between human capital endowments and the structure of regional
export flows. Since the development of each export product may be assumed
to be associated with innovation activity, requiring human capital inputs,
the core hypothesis tested in this paper is that cross-regional variations
in endowments of human capital influence the extensive margin (number of
export products) rather than the intensive margin (average export value per
product). The hypothesis is tested in a cross-regional regression model,
applied to aggregate and within-industry export flows from Swedish regions.
The empirical results confirm the theoretical prediction that the response
of regional export flows to cross-regional variations in human capital is
an increase in the extensive margin. To the extent that the regional human
capital endowment affects the intensive margin, the effect is a higher
average price per export product.
Keywords: product differentiation; knowledge; human capital; accessibility; export diversity; extensive margin; economies of scale; (follow links to similar papers)
JEL-Codes: F12; F14; R12; R32; (follow links to similar papers)
32 pages, September 28, 2009
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