Harrigan and Zakrajsek.
Harrigan and Zakrajsek study the relationship between
specialization and relative factor supplies. Using a panel of 23
countries over 23 years, they show that factor endowments do help to
predict specialization, particularly in large industrial sectors which
are not natural-resource based. Their conclusion is that relative factor
endowments have a large influence on specialization. However, there is
still a great degree of country-specific idiosyncrasy in specialization
patterns. A fuller account of specialization probably will include roles
for history geography, technology and economic policy -- but such an
account definitely will include a role for relative factor supplies.