Economic Geography, Comparative Advantage and Trade within Industries: Evidence from the OECD

Abstract

A large share of world trade, especially among the OECD countries, is twoway trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products within industries, whereas they import others. We examine this issue, by focusing on the shares of IIT that are vertical and horizontal and by examining price dispersion. The re g r ession results suggest that an abundant human capital endowment as well as a large domestic market increases the quality of OECD

Country‐specific factors and the pattern of intra‐industry trade in China's manufacturing

“…Ever since the publication of Grubel and Lloyd's book in 1975, there has been a proliferation of theoretical and empirical research on IIT. The most widely used explanations for IIT at industry level draw on economies of scale and horizontal product differentiation as well as country characteristics with a model of monopolistic competition (Greenaway and Torstensson, 2000;Helpman and Krugman, 1985). Helpman and Krugman (1985) provide a theoretical framework to describe the negative relationship between the share of intra-industry trade and per capita GDP difference across countries.…”

The EU-Turkey Customs Union and Greece: Who is the loser?

“…Footnotes 1Falvey [1981] was the first to construct an explicit model of trade in vertically differentiated products. In the meantime, a considerable body of evidence has accumulated which testifies to the importance of vertical intra-trade (see, for example, Greenaway, Hine, and Miller [1995] and Greenaway and Torstensson [1998]). …”

Factor Endowment and Market Size in EU-CEE Trade : Would Human Capital Change Actual Quality Trade Patterns?

“…The first model is the so-called neo-HO model (Falvey 1981;Falvey and Kierzkowski 1987). Greenaway and Torstensson (2000) tested trade in qualitydifferentiated goods as a linear function of lowering trade costs and of market size differentials between trade partners. 9 The analysis consisted of testing the relation between factor endowment and market size by cross-country regressions on the one hand, and industry-level price gaps between trade partners, on the other.…”