GLOBAL COMPETITION AND THE NATURE OF TRADE IN THE EUROPEAN-COMMUNITY PULP AND PAPER-INDUSTRY

This paper examines the changing nature of pulp and paper trade patter ns within the European Community as these producers responded to incre asing global competition between the years 1960 and 1985. As the proce ss of internationalization in the industry intensified during the 1980 s, specialization in the trade of individual pulp and paper products o ccurred between member states. Specialization is explained in the theo retical context of competitive advantage, where corporate strategies a nd government intervention are emphasized, rather than in the traditio nal neoclassical context of free markets, or comparative advantage. Th e nature of trade is measured using Grubel and Lloyd's (1975) B(ij) in dex.