Bilateral Intra-Industry Trade in a Multi-Country Helpman-Krugman Model

Abstract

The factors that explain the level of intra-industry trade and its share of total trade in a multi-country version of the Helpman-Krugman model are derived. The role of similarity of endowment ratios and similarity of economic sizes differ in the multi-country version from the two country version of this model. It is also demonstrated that the volume of total trade, the volume of intra-industry trade and the volume of inter-industry trade can each be described by a modified gravity equation. A new diagrammatical device is introduced that illustrates the relationship between trade volume and similarity in country size. [F12]

The Greater Arab Free Trade Area(GAFTA): an Estimation of Its Trade Effects

“…In recent years, significant progress has been made with regard to the theoretical derivation of this equation. Indeed, it has been increasingly recognized that the gravity equation could be derived from several theories, including mainly Ricardian, Heckscher-Ohlin and monopolistic competition models (Helpman and Krugman 1985, Bergstrand 1989, Markusen and Wigle 1990, Evenett and Keller 2002, Shelburne 2002, but also the reciprocal-dumping model (Feenstra, Markusen and Rose, 2001). It may also be derived both from complete or incomplete specialization frameworks (Haveman and Hummel 2004).…”

“…(2004). 1996, 1997, 200076 Brazil 1996Chile 1996Comoros 1996, 1997, 2000, 2002, 2003Djibouti 1996, 1997, 2000, 2002, 2003Egypt 1996, 1997, 2000, 2002, 2003Iceland 1996Jordan 1996, 1997Kuwait 1996, 1997, 2002, 2003Lebanon 1996Libya 1996, 1997, 2000, 2002, 2003Malaysia 1996Mauritania 1996, 1997Morocco 1996, 1997, 2000Oman 1996…”

The Asymmetric Effect of Endowments on Vertical Intra‐industrial Trade

“…See, for instance, the empirical models derived and discussed in Levinsohn (1993, 1995),Kim and Keun-Yeob (2001) andShelburne (2002).5 Although we consider 188 countries, we only report descriptive statistics for the sample of 32 countries for which data are available to build capital stocks.…”

“…4 4 See, for instance, the empirical models derived and discussed in Hummels and Levinsohn (1993, 1995), Kim and Keun‐Yeob (2001) and Shelburne (2002). …”

The Emergence of Iran in the World Car Industry: An Estimation of its Export Potential

“…In recent years, significant improvement has been made with regard to the theoretical derivation of this equation. As a matter of fact, it has been increasingly recognised that the gravity model can be derived from several theories, including Ricardian, Heckscher–Ohlin and monopolistic competition models (Helpman and Krugman, 1985; Bergstrand, 1989; Markusen and Wigle, 1990; Evenett and Keller, 2002; Shelburne, 2002), but also the reciprocal‐dumping model (Feenstra et al, 2001). It may also be derived both from complete or incomplete specialisation frameworks (Haveman and Hummel, 2004).…”