Skip to main content
SpringerLink
Log in

Marginal Intra-Industry Trade and Trade-Induced Adjustment: a Survey

  • Chapter
Intra-Industry Trade and Adjustment

Abstract

Probably the greatest source of interest in intra-industry trade (IIT) has been its link with factor-market adjustment. Policy-oriented economists readily grasped the opportunity of an index which was simple to calculate and presumed to indicate relatively frictionless adjustment to trade liberalization.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 69.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References and Further Reading

  • Adler, Michael (1970) ‘Specialization in the European Coal and Steel Community’. Journal of Common Market Studies, vol. 8, 175–191.

    Article  Google Scholar 

  • Balassa, B. (1966) ‘Tariff Reductions and Trade in Manufactures among the Industrial Countries’, American Economic Review, 56, 466–73.

    Google Scholar 

  • Balasubramanyam, V.N. and Greenaway, D. (1993) ‘Regional Integration Agreements and Foreign Direct Investment’, in Anderson, K. and Blackhurst, R. (eds), Regional Integration and the Global Trading System, Hemel Hempstead: Harvester Wheatsheaf.

    Google Scholar 

  • Baldwin, R.E., Mutti, J.H. and Richardson, J.D. (1980) ‘Welfare Effects on the United States of a Significant Multilateral Tariff Reduction’, Journal of International Economics, 36, 405–23.

    Article  Google Scholar 

  • Bhagwati, J.N. (ed.) (1982) Import Competition and Response, Chicago and London: The University of Chicago Press.

    Google Scholar 

  • Brander, J. (1981) ‘Intra-Industry Trade in Identical Commodities’, Journal of International Economics, 11, 1–14.

    Article  Google Scholar 

  • Brecher, R.A. and Choudhri, E.U. (1994) ‘Pareto Gains from Trade Reconsidered: Compensating for Jobs Lost’, Journal of International Economics, 36, 223–38.

    Article  Google Scholar 

  • Brülhart, M. (1994) ‘Marginal Intra-Industry Trade: Measurement and Relevance for the Pattern of Industrial Adjustment’, Weltwirtschaftliches Archiv, 130, 600–13.

    Article  Google Scholar 

  • Brülhart, M. (1995) ‘Scale Economics, Intra-Industry Trade and Industry Location in the New Trade Theory’, Trinity Economic Papers, Technical Paper No. 4, Trinity College Dublin.

    Google Scholar 

  • Brülhart, M., Murphy, A. and Strobl, E. (1998)‘Intra-Industry Trade and Job Turnover: A Panel Analysis Using Plant-Level Data’, mimeo, University of Manchester.

    Google Scholar 

  • Brülhart, M. and Torstensson, J. (1996) ‘Regional Integration, Scale Economies and Industry Location in the European Union’, CEPR Discussion Paper, 1435, Centre for Economic Policy Research, London.

    Google Scholar 

  • Cadot, O., Faini, R. and de Melo, J. (1995) ‘Early Trade Patterns under the Europe Agreements: France, Germany and Italy’, European Economic Review (Papers and Proceedings), 39, 601–10.

    Article  Google Scholar 

  • Centre d’Études Prospectives et d’Informations Internationales (CEPII) (1988) ‘Commerce intra-branche: Performance des firmes et analyse des échanges commerciaux dans la Communauté européenne’, in Commission of the European Communities, Studies on the ‘Cost of Non-Europe’ 2, Luxembourg.

    Google Scholar 

  • Commission of the European Communities (CEC) (1996) ‘The 1996 Single Market Review’, Commission Staff Working Paper SEC (96) 2378, Brussels.

    Google Scholar 

  • Dixit, A. and Norman, V. (1986) ‘Gains from Trade Without Lump-Sum Compensation’, Journal of International Economics, 21, 111–22.

    Article  Google Scholar 

  • Dixon, P.B. and Menon, J. (1995) ‘Measures of Intra-Industry Trade as Indicators of Factor Market Disruption’ CREDIT Research Paper, 95/15, University of Nottingham.

    Google Scholar 

  • Drdbek, Z. and Smith, A. (1995) ‘Trade Performance and Trade Policy in Central and Eastern Europe’, CEPR Discussion Paper, 1182, Centre for Economic Policy Research, London.

    Google Scholar 

  • Drysdale, P. and Garnaut, R. (1993) ‘The Pacific: An Application of a General Theory of Economic Integration’, in Bergsten, C.F. and Noland, M. (eds), Pacific Dynamism and the International Economic System, Washington, DC: Institute for International Economics.

    Google Scholar 

  • Elliott, R. (1994) ‘Adjustment, Changing Intra-Industry Trade and Specialisation — A Case Study Analysis of the Steel Industry’, mimeo, University of Nottingham.

    Google Scholar 

  • Feenstra, R.C. and Lewis, T.R. (1994) ‘Trade Adjustment Assistance andPareto Gains from Trade’, Journal of International Economics, 36, 201–22.

    Article  Google Scholar 

  • Finger, J.M. (1975) ‘Trade Overlap and Intra-Industry Trade’, Economic Inquiry, 13, 581–9.

    Article  Google Scholar 

  • Fischer, R.D. and Serra, P. (1996) ‘Income Inequality and Choice of Free Trade in a Model of Intraindustry Trade’, Quarterly Journal of Economics, 111, 41–64.

    Article  Google Scholar 

  • Globerman, S. (1992) ‘North American Trade Liberalization and Intra-Industry Trade’, Weltwirtschaftliches Archiv, 128, 487–97.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Gonzalez, J.G. and Velez, A. (1993) ‘An Empirical Estimation of the Level of Intra-Industry Trade between Mexico and the United States’, in Fatemi, K. North American Free Trade Agreement, New York: St. Martin’s Press.

    Google Scholar 

  • Grant, R.J., Papadakis, M.C. and Richardson, J.D. (1993) ‘Global Trade Flows: Old Structures, New Issues, Empirical Evidence’, in Bergsten, C.F. and Noland, M. (eds), Pacific Dynamism and the International Economic System. Washington, DC: Institute for International Economics.

    Google Scholar 

  • Greenaway, D. (1987) ‘Intra-Industry Trade, Intra Firm Trade and European Integration’, Journal of Common Market Studies, 26, 153–72.

    Article  Google Scholar 

  • Greenaway, D. and Hine, R.C. (1991) Intra-Industry Specialization, Trade Expansion and Adjustment in the European Economic Space’, Journal of Common Market Studies, 29, pp. 603–22.

    Article  Google Scholar 

  • Greenaway, D. and Milner, C. (1986) The Economics of Intra-Industry Trade, Oxford: Blackwell.

    Google Scholar 

  • Greenaway, D. Hine, R.C. and Milner, C. (1994a) ‘Country-Specific Factors and the Pattern of Horizontal and Vertical Intra-Industry Trade in the UK’, Weltwirtschaftliches Archiv, 130, 77–100.

    Article  Google Scholar 

  • Greenaway, D. Hine, R.C., Milner, C. and Elliott, R. (1994b) ‘Adjustment and the Measurement of Marginal Intra-Industry Trade’, Weltwirtschaftliches Archiv, 130, 418–27.

    Article  Google Scholar 

  • Grubel, H. and Lloyd, P.J. (1975) Intra-Industry Trade, London: Macmillan.

    Google Scholar 

  • Hamilton, C. and Kniest, P. (1991) ‘Trade Liberalization, Structural Adjustment and Intra-Industry Trade: A Note’, Weltwirtschaftliches Archiv, 127, 356–67.

    Article  Google Scholar 

  • Hine, R.C. (1989) ‘Customs Union Enlargement and Adjustment: Spain’s Accession to the European Community’, Journal of Common Market Studies, 28, 1–27.

    Article  Google Scholar 

  • Hoekman, B. and Djankov, S. (1996) Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports’, CEPR Discussion Paper, 1377, London: Centre for Economic Policy Research.

    Google Scholar 

  • Hoekman, B. and Kostecki, M. (1995) The Political Economy of the World Trading System, Oxford: Oxford University Press.

    Google Scholar 

  • Jordan, T. (1993) ‘Intra-Industry Trade — An In-Depth Study of Swedish Liquid Pump Trade’, Weltwirtschaftliches Archiv, 129, 752–76.

    Article  Google Scholar 

  • Khalifah, N.A. (1996) ‘AFTA and Intra-Industry Trade’, ASEAN Economic Bulletin, 12, 351–68.

    Article  Google Scholar 

  • Krugman, P. (1980) Scale Economies, Product Differentiation, and the Pattern of Trade’, American Economic Review, 70, 950–9.

    Google Scholar 

  • Krugman, P. (1981) ‘Intraindustry Specialization and the Gains from Trade’,Journal of Political Economy, 89, 959–73.

    Article  Google Scholar 

  • Krugman, P. (1983) ‘New Theories of Trade Among Industrial Countries’, American Economic Review (Papers and Proceedings), 73, 343–7.

    Google Scholar 

  • Krugman, P. (1987) ‘Economic Integration in Europe: Some Conceptual Issues’, reprinted in Jacquemin, A. and Sapir, A. (eds) (1989) The European Internal Market, Oxford: Oxford University Press.

    Google Scholar 

  • Krugman, P. (1994) ‘Empirical Evidence on the New Trade Theories: The Current State of Play’, in CEPR Conference Report, New Trade Theories, London.

    Google Scholar 

  • Krugman, P. and Venables, A.J. (1990) ‘Integration and the Competitiveness of Peripheral Industry’, in Bliss, C. and de Macedo, J. (eds) Unity with Diversity in the European Community, Cambridge: Cambridge University Press, pp. 56–75.

    Google Scholar 

  • Lemoine, F. (1995) ‘La dynamique des exportations des PECO vers l’Union Européenne’, Économie Internationale, 62, 145–72.

    Google Scholar 

  • Lincoln, Edward J. (1990) ‘Japan’s Unequal Trade’, Washington D.C., Brookings Institute.

    Google Scholar 

  • Little, J.S. (1996) ‘U.S. Regional Trade with Canada during the Transition to Free Trade’, New England Economic Review, January 3–22.

    Google Scholar 

  • Lundberg, L. (1992) ‘Economic Integration, Inter- and Intra-Industry Trade: The Case of Sweden’, Scandinavian Journal of Economics, 94, 393–408.

    Article  Google Scholar 

  • Lundberg, L. and Hansson, P. (1986) ‘Intra-Industry Trade and its Consequences for Adjustment’, in Greenaway, D. and Tharakan, P.K.M. (eds), Imperfect Competition and International Trade, Brighton, Wheatsheaf.

    Google Scholar 

  • Marvel, H.P. and Ray, E.J. (1987) ‘Intraindustry Trade: Sources and Effects on Protection’, Journal of Political Economy, 95, 1278–91.

    Article  Google Scholar 

  • Menon, J. and Dixon, P.B. (1995) ‘Regional Trading Agreements and Intra-Industry Trade’, CREDIT Research Paper, 95/14, University of Nottingham.

    Google Scholar 

  • Menon, J. and Dixon, P.B. (1997) ‘Intra-Industry versus Inter-Industry Trade:Relevance for Adjustment Costs’. Weltwirtschaftliches Archiv, 133, 164–169.

    Article  Google Scholar 

  • Mussa, M. (1982) ‘Government Policy and the Adjustment Process’, in Bhagwati, pp. 73–120.

    Google Scholar 

  • Murshed, M. and Noonan, D. (1994) ‘Measures of Marginal Intra-Industry Trade: A Comment on the Brülhart Index’, mimeo, University of Bradford.

    Google Scholar 

  • Neary, J.P. (1982) ‘Intersectoral Capital Mobility, Wage Stickiness, and theCase for Adjustment Assistance’, in Bhagwati, pp. 39–69.

    Google Scholar 

  • Neven, D. (1995) ‘Trade Liberalisation with Eastern Nations: Some Distribution Issues’, European Economic Review (Papers and Proceedings), 39, 622–32.

    Article  Google Scholar 

  • Noland, M. (1990) Pacific Basin Developing Countries: Prospects for the Future, Washington, DC: Institute for International Economics.

    Google Scholar 

  • OECD (1994) The OECD Jobs Study: Evidence and Explanations, Paris: OECD.

    Google Scholar 

  • Oliveras, J. and Terra, I. (1996) ‘ “A” Marginal-Intra-Trade Index: A Comment’, mimeo, Universidad de la Repüblica, Uruguay.

    Google Scholar 

  • Parr, R.G. (1994) ‘Intra-Industry Trade and the Prospect of Trade Liberalisation in South Africa’, South African Journal of Economics, 62, 393–405.

    Article  Google Scholar 

  • Primo Braga, C.A., Safadi, R. and Yeats, A. (1994) ‘Regional Integration in the Americas: Déjà Vu All Over Again?’, World Economy, 17, 577–601.

    Article  Google Scholar 

  • Rajan, R.S. (1996) ‘Measures of Intra-Industry Trade Reconsidered with Reference to Singapore’s Bilateral Trade with Japan and the United States’, Weltwirtschaftliches Archiv, 132, 378–89.

    Article  Google Scholar 

  • Ratnayake, R. and Jayasuriya, S. (1991) Intra-Industry Trade and Protection: Which Way Does the Causation Go?’, Economics Letters, 35, 71–6.

    Article  Google Scholar 

  • Reker, C. (1994) ‘Adjustment Pressures and Adjustment Processes in the Machine Tool Industry: The Role of Intra-Industry Trade’, mimeo, University of Düsseldorf, Germany.

    Google Scholar 

  • Richardson, J.D. (1989) ‘Empirical Research on Trade Liberalisation with Imperfect Competition: A Survey’, OECD Economic Studies, 12, 7–50.

    Google Scholar 

  • Rodrik, D. (1994) ‘What Does the Political Economy Literature on Trade Policy (Not) Tell Us That We Ought to Know?’, NBER Working Paper, 4870, Cambridge, MA: National Bureau of Economic Research.

    Google Scholar 

  • Sapir, A. (1992) ‘Regional Integration in Europe’, The Economic Journal, 102, 1491–1506.

    Article  Google Scholar 

  • Shelburne, R.L. (1993) ‘Changing Trade Patterns and the Intra-Industry Trade Index: A Note’, Weltwirtschaftliches Archiv, 129, 829–33.

    Article  Google Scholar 

  • Tharakan, P.K.M. and Calfat, German (1994) ‘Adjustment and Intra-Industry Trade: A factor-Heterogeneity Test using Firm-Level Data’ mimeo, University of Antwerp.

    Google Scholar 

Download references

Authors
  1. Marius Brülhart
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Manchester, UK

    Marius Brülhart

  2. University of Nottingham, UK

    Robert C. Hine

Copyright information

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

About this chapter

Cite this chapter

Brülhart, M. (1999). Marginal Intra-Industry Trade and Trade-Induced Adjustment: a Survey. In: Brülhart, M., Hine, R.C. (eds) Intra-Industry Trade and Adjustment. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-27173-3_3

Download citation

Publish with us

Policies and ethics

Search

Navigation