On the evolution of comparative advantage: Path-dependent versus path-defying changes

Skill-relatedness and employment growth of firms in times of prosperity and crisis in an oil-dependent region

“…Although the period studied is short, this could indicate that the Stavanger region over time has had a tendency to diversify in activities related to petroleum extraction, which may in turn have led to regional lock-in (Coniglio et al, 2018). This may indicate that there will be adverse effects on long-term regional development in the region.…”

“…However, this empirical fact cannot exclude the possibility that under some circumstances, there might be a downside to relatedness. For instance, scholars have suggested that the overall tendency of regions to diversify in related activities may lead to regional lock-in, with adverse effects on long-term regional development (Coniglio et al, 2018). Roessler et al (2019) show that this is the case for specialized industrial cities in the Rustbelt states of the US which found themselves in a 'low complexity trap' due to diversifying in new technologies closely related to their old techno-industrial core, causing them to fall behind economically.…”

“…However, little attention has (yet) been devoted to possible downsides of relatedness (Fitjar and Timmermans, 2019). Scholars have suggested that the overall tendency of regions to diversify in related activities may lead to regional lock-in, with adverse effects on long-term regional development (Coniglio et al, 2018). Moreover, it is not unlikely that the co-location of skill-related industries, i.e., industries that share similar skill requirements (Neffke and Henning, 2013) makes them compete for resources, leading to labour poaching and higher wages (Brascoupe et al, 2010;Duranton and Puga, 2004;Glaeser, 1992;Rosenthal and Strange, 2004).…”

Competitiveness of the Commodity Indonesian Coffee Beans the International Market

“…With the acquisition of the IG certificate, it is predicted that Indonesian coffee commodities will be more in demand by consumers in the international market, in line with that Indonesian coffee commodities are encouraged to follow the fairtrade standards set by the Fairtrade Labeling Organizations Certification (FLO-CERT), namely (1) coffee farmers are required to become members of cooperatives formed in coffee processing units (2) coffee plant cultivation is carried out organically, without the use of chemical elements in plants and areas of coffee plants (3) coffee farmers are required to sell coffee production to cooperatives or traders appointed by cooperatives. (4) cooperatives function as supervisors of coffee crop cultivation, domestic coffee marketing, and processing of coffee commodities, and at the same time as exporters (5) coffee farmers earn premiums from importer profits through cooperatives in the form of production facilities [1].…”

Climate change, comparative advantage and the water capability to produce agricultural goods

“…However, such type of models have not only the major drawback of being very dicult to handle due to the complexity of the computation, 11 but also often failed to analyze the economic consequences such as the impact of the economic water scarcity of the agricultural specialization of nations. Economists on the other side, investigate in details how comparative advantages evolve (Costinot et al, 2016, Coniglio et al, 2021, but neglect the detailed hydrological information at the local level to understand the role of water in the production of agricultural goods. For instance, Murphy (2009) and Afkhami et al (2018) capture the availability of water with annual runos and groundwater recharges in the exporting country.…”