Engineering Trade Specialization of Sweden and Other Industrial Countries: A Study of Trade Adjustment Mechanisms of Factor Proportions Theory

This is an empirical investigation of determinants of engineering trade specialization largely within a factor proportions theoretical framework. The factor proportions approach was the first that came to the' mind in the late 1960's when Ragnar Bentzel, my thesis adviser, and I discussed the changing composition and rapid growth of engineering products in Swedish exports. This approach was accepted by the Institute and its director at the time, Lars Nabseth, as a fruitful way to analyse the broad trends in the development of the engineering industry. It was felt that the study could be seen as a test of the factor proportions theory at this relatively disaggregated level and could serve as a basis for further more micro oriented analysis.