Advertisement

Intra-Industry Trade: What Does the Theory Predict and How Robust Are the Empirical Estimates?

Chapter

Abstract

The focus of this book is on intra-industry trade (IIT) in Europe and new methods introduced to analyse this trade. The aim of this chapter is to serve as a background to subsequent chapters. It is not primarily meant as a comprehensive survey. Rather, the aim is to complement the now classic study by Greenaway and Milner (1986) and the new survey by Greenaway and Torstensson (1997).

Keywords

Trade Cost Scale Economy Bilateral Trade Factor Endowment Trade Theory 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References and Further Reading

  1. Bergstrand, Jeffrey H. (1983) ‘Measurement and Determinants of IntraIndustry Trade’, in: Tharakan P.K.M. (ed.) ‘Intra-Industry Trade: Empirical and Methodological Aspects’, Amsterdam, North-Holland.Google Scholar
  2. Bergstrand, Jeffrey H. (1990) ‘The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-Industry Trade’. Economic Journal, 100, 1216–29.CrossRefGoogle Scholar
  3. Bhagwati, J. and Davis, D.R. (1994) ‘Intraindustry Trade Issues and Theory’, Discussion Paper 1695, Harvard Institute of Economic Research.Google Scholar
  4. Brander, J.A. (1981) Intra-Industry Trade in Identical Commodities’, Journal of International Economics, 11, 1–14.CrossRefGoogle Scholar
  5. Brülhart, M. (1994), ‘Marginal Intra-Industry Trade: Measurement and Relevance for the Pattern of Industrial Adjustment’, Weltwirtschaftliches Archiv, 130, 600–13.CrossRefGoogle Scholar
  6. Brülhart, M. and Torstensson, J. (1996) ‘Regional Integration, Scale Economies and Industry Location in the European Union’, CEPR Discussion Paper 1435.Google Scholar
  7. Caves, Richard E. (1981) ‘Intra-Industry Trade and Market Structure in the Industrial Countries’, Oxford Economic Papers, vol. 33, 203–223.Google Scholar
  8. Davis, D.R. (1995) ’Intra-Industry Trade: A Heckscher-Ohlin-Ricardo Approach’, Journal of International Economics, 39, 201–26.CrossRefGoogle Scholar
  9. Dixit A.K. and Norman, V. (1980) Theory of International Trade, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  10. Dollar, D. and Wolff, E.N. (1993) Competitiveness, Convergence,and International Specialisation, MIT Press.Google Scholar
  11. Falvey, R.E. (1981) ‘Commercial Policy and Intra-Industry Trade’, Journal of International Economics, 11, 495–511.CrossRefGoogle Scholar
  12. Falvey, R.E. and Kierzkowski, H. (1987) ‘Product Quality, Intra-Industry Trade and (Im)perfect Competition’, in Kierzkowski, H. (ed.), Protection and Competition in International Trade, Oxford: Blackwell.Google Scholar
  13. Finger, J.M. (1975) ‘Trade Overlap and Intra-Industry Trade’, Economic Inquiry, 13, 143–61.CrossRefGoogle Scholar
  14. Globerman, S. and Dean, J.W. (1990) ‘Recent Trends in Intra-Industry Trade and Their Implications for Future Trade Liberalization’, Weltwirtschaftliches Archiv, 126, 25–49.CrossRefGoogle Scholar
  15. Gray, H.P. (1988) Intra-Industry Trade: An "Untidy Phenomenon"’, Weltwirtschaftliches Archiv, 124, 211–29.CrossRefGoogle Scholar
  16. Greenaway, D. and Hine, R.C. (1991) ‘Intra-Industry Specialization, Trade Expansion and Adjustment in the European Economic Space’, Journal of Common Market Studies, 24, 603–22.CrossRefGoogle Scholar
  17. Greenaway, D. and Milner, C. (1986) The Economics of Intra-Industry Trade, Oxford: Blackwell.Google Scholar
  18. Greenaway, D. and Milner, C. (1987) ‘Intra-Industry Trade: Current Perspectives’, Weltwirtschaftliches Archiv, 123, 39–48.CrossRefGoogle Scholar
  19. Greenaway, D. and Torstensson, J. (1997) ‘Back to the Future. Taking Stock on Intra-Industry Trade’, Weltwirtschaftliches Archiv, 133, 249–65.CrossRefGoogle Scholar
  20. Greenaway, D., Hine, R.C. and Milner, C. (1994) ‘Country-Specific Factors and the Pattern of Horizontal and Vertical Intra-Industry Trade in the UK’, Weltwirtschaftliches Archiv, 130, 78–100.Google Scholar
  21. Greenaway, D., Hine, R.C. and Milner, C. (1995) ‘Vertical and Horizontal Intra-Industry Trade: A Cross-Industry Analysis for the United Kingdom’, Economic Journal, 105, 1505–18.CrossRefGoogle Scholar
  22. Grubel, H. and Lloyd, P. (1975) Intra-Industry Trade, London: MacMillan.Google Scholar
  23. Hansson, P. (1991) ‘Determinants of Intra-Industry Specialisation in Swedish Foreign Trade’, Scandinavian Journal of Economics, 93, 391–406.CrossRefGoogle Scholar
  24. Hansson, P. (1993) ‘The Effects of Trade Barriers on Domestic Market Performance-Evidence from the Swedish and Norwegian Manufacturing Industries’, in Fagerberg, J. and Lundberg, L. (eds), European Economic Integration: A Nordic Perspective, Aldershot: Averbury.Google Scholar
  25. Hansson, P. and Lundberg, L. (1989). ‘The Role of Comparative Costs and Elasticities of Substitution as Determinants of Interand Intra-Industry Trade’, in Tharakan, P.K.M. and Kol, J. (eds), Intrandustry Trade: Theory, Evidence and Extensions, London: Macmillan.Google Scholar
  26. Harrigan, J. (1994) ‘Scale Economies and the Volume of Trade’, Review of Economics and Statistics, 76, 321–8.CrossRefGoogle Scholar
  27. Helpman, E. (1981) ‘International Trade in the Presence of Product Differentiation, Economies of Scale and Product Differentiation’, Journal of International Economics,11, 305–40.CrossRefGoogle Scholar
  28. Helpman, E. (1987) ‘Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countries’, Journal of the Japanese and International Economies, 1, 62–81.CrossRefGoogle Scholar
  29. Helpman, E. and Krugman, P.R. (1985) Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition and the International Economy, Cambridge, Mass: MIT Press.Google Scholar
  30. Hummels, David and Levinsohn, James (1995) ‘Monopolistic Competition and International Trade: Reconsidering the Evidence’, Quarterly Journal of Economics, 110, 799–836.CrossRefGoogle Scholar
  31. Jordan, T. (1993) ‘Intra-Industry Trade: An In-Depth Study of Swedish Liquid Pump Trade’, Weltwirtschaftliches Archiv, 129, 752–76.CrossRefGoogle Scholar
  32. Klepper, S. and Leamer, E.E. (1984) ‘Consistent Sets of Estimates for Regressions with Errors in All Variables’, Econometrica, 52, 163–83.CrossRefGoogle Scholar
  33. Krasker, W.S. and Pratt, J.W. (1986) ‘Bounding the Effects of Proxy Variables on Regression Coefficients’, Econometrica, 54, 641–55.CrossRefGoogle Scholar
  34. Krugman, P. (1979) ‘Increasing Returns, Monopolistic Competition and International Trade’, Journal of International Economics, 9, 469–79.CrossRefGoogle Scholar
  35. Krugman, P. (1980) ‘Scale Economies, Product Differentiation and the Pattern of Trade’, American Economic Review, 70, 950–9.Google Scholar
  36. Krugman, P. (1991) Geography and Trade, Cambridge, Mass: MIT Press.Google Scholar
  37. Learner, E.E. (1983) ‘Let’s Take the Con Out of Econometrics’, American Economic Review, 73, 31–43.Google Scholar
  38. Learner, E.E. (1984) Sources of International Comparative Advantage, Cambridge, Mass: MIT Press.Google Scholar
  39. Leamer, E.E. (1986) ‘Sensitivity Analyses Would Help’, American Economic Review, 75, 308–13.Google Scholar
  40. Learner, E.E. (1994) ‘Testing Trade Theory’, in Greenaway, D. and Winters, A.L. (eds), Surveys in International Trade, Oxford: Blackwell.Google Scholar
  41. Learner, E.E. and Leonard, H. (1983) ‘Reporting the Fragility of Regression Estimates’, Review of Economics and Statistics, 65, 306–17.CrossRefGoogle Scholar
  42. Levine, R. and Renelt, D. (1992) ‘A Sensitivity Analysis of Cross-Country Growth Regressions’, American Economic Review, 82, 942–63.Google Scholar
  43. Lundberg, Lars (1982) ‘Intra-Industry Trade: The Case of Sweden’, Weltwirtschaftliches Archiv, 118, 302–316.CrossRefGoogle Scholar
  44. Maddala, G.S. (1989) Introduction to Econometrics, New York: Macmillan. Google Scholar
  45. Tharakan,P.K.M. (1989) ‘Bilateral Intra-Industry Trade between Countries with Different Factor Endowment Patterns’, in Tharakan, P.K.M. and Kol,J. (eds), Intra-Industry Trade: Theory, Evidence and Extensions, London: Macmillan.CrossRefGoogle Scholar
  46. Tharakan, P.K.M. and Kerstens, B. (1994) ‘Does North-South Horizontal Intra-Industry Trade Really Exist? An Analysis of the Toy Industry’,Weltwirtschaftliches Archiv, 131, 86–105.CrossRefGoogle Scholar
  47. Torstensson, J. (1991) ‘Quality Differentiation and Factor Proportions inInternational Trade’, Weltwirtschaftliches Archiv, 127, 183–94.CrossRefGoogle Scholar
  48. Torstensson, J. (1996a) ‘Determinants of Intra-Industry Trade: A Sensitivity Analysis’, Oxford Bulletin of Economics and Statistics, 58, 507–24.CrossRefGoogle Scholar
  49. Torstensson, J. (1996b) ‘IntraIndustry Trade Under Monopolistic Competition: Some Theoretical Results’, mimeo, Lund University.Google Scholar
  50. Torstensson,J.(1996c)‘Technical Differences and Inter-Industry Trade in thd Nordic Countries’, Scandinavian Journal of Economics, 98, 93–110.CrossRefGoogle Scholar
  51. Torstensson, J. (1996d) ‘Can Factor Proportions Explain Vertical Intra-Industry Trade’, Applied Economics Letters, 3, 307–9.CrossRefGoogle Scholar
  52. White, H. (1980) ‘A Heteroscedasticity-Consistent Covariance Matrix Estim ator and a Direct Test for Heteroscedasticity’, Econometrica, 48, 817–38.CrossRefGoogle Scholar

Copyright information

© Centre of Research in European Development and International Trade (CREDIT) 1999

Authors and Affiliations

There are no affiliations available

Personalised recommendations