John Sutton

in Competing in Capabilities

Published in print October 2012 | ISBN: 9780199274536
Published online January 2013 | e-ISBN: 9780191746123 | DOI:

Series: Clarendon Lectures in Economics


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  • Economic Development and Growth


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This chapter explores the implications of the following assumption: scarce capabilities tend to be clustered (in terms of geography). This assumption is familiar from the Geography and Trade literature — but here the agenda is different. By combining it with the key assumption of Chapter 1, this chapter arrives at a theory of the currently popular ‘product-mix diagrams’ that link a country's wealth to the mix of goods it produces and exports.

Keywords: capability; quality; product-mix diagrams; exports

Chapter.  5019 words.  Illustrated.

Subjects: Economic Development and Growth

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