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Intra-Industry trade and limited producer horizons: An empirical investigation

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Abstract

Intra-Industry Trade and Limited Producer Horizons: An Empirical Investigation. — Following three decades of growing integration, intra-European trade has expanded significantly. Much of the growth has been in intra-industry trade (ITT). ITT appears to be causally correlated with integration, one possible link being through the impact of market integration on producer horizons. This paper applies the limited producer horizons hypothesis as a possible explanation of movements in IIT in an important class of differentiated products. It finds evidence in support of the hypothesis for some, but not all, countries in the EC.

Zusammenfassung

Intraindustrieller Handel und der begrenzte Horizont der Produzenten. Eine empirische Untersuchung. — Im Laufe von drei Jahrzehnten zunehmender Integration hat sich der innereuropäische Handel beträchtlich ausgedehnt. Ein groβer Teil des Wachstums entfiel auf den intraindustriellen Handel. Dieser ist mit der Integration stark korreliert, wobei eine mögliche Verbindung darin besteht, daβ die Marktintegration den Horizont der Produzenten bestimmt. In diesem Aufsatz wird die Hypothese des begrenzten Produzenten-Horizonts als eine mögliche Erklärung für die Entwicklung des intraindustriellen Handels bei einer wichtigen Gruppe differenzierter Produkte getestet. Die Ergebnisse stützen die Hypothese für einige, aber nicht für alle EG-Länder.

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Authors
  1. Douglas Cooper
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  2. David Greenaway
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  3. Anthony J. Rayner
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Cooper, D., Greenaway, D. & Rayner, A.J. Intra-Industry trade and limited producer horizons: An empirical investigation. Weltwirtschaftliches Archiv 129, 345–366 (1993). https://doi.org/10.1007/BF02707701

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  • DOI: https://doi.org/10.1007/BF02707701

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