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The Geography of Intra-Industry Trade: empirics

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Author Info
Anthony Venables (London School of Economics)
Patricia Rice (University of Southampton)
Martin Stewart (London School of Economics)

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Abstract

This paper uses bilateral trade data for OECD countries at the 3-digit industry level to investigate the geography of intra-industry trade (IIT). IIT diminishes with distance and much of the existing empirical literature suggests that this is an inherent characteristic of such trade, arguing that trade in sectors intensive in IIT is choked off rapidly by distance. We show that the dependence of IIT on geography arises not because of any inherent feature of the effects of distance on such trade, but because of the spatial structure of countries' supply and demand characteristics; close countries do a lot of IIT because they have similar economic structures.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Topics in Economic Analysis & Policy.

Volume (Year): 3 (2003)
Issue (Month): 1 ()
Pages: 1105-1105
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Handle: RePEc:bep:eaptop:v:3:y:2003:i:1:p:1105-1105

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Related research
Keywords: intra-industry trade trade structure geography transport costs

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Find related papers by JEL classification:
F1 - International Economics - - Trade

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Veall, Michael R & Zimmermann, Klaus F, 1994. "Goodness of Fit Measures in the Tobit Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 485-99, November.
  2. Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," CEP Discussion Papers 0495, Centre for Economic Performance, LSE. [Downloadable!]
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  3. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February. [Downloadable!] (restricted)
  4. Hummels, David & Levinsohn, James, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 799-836, August. [Downloadable!] (restricted)
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  5. Claudy Culem & Lars Lundberg, 1986. "The product pattern of intra-industry trade: Stability among countries and over time," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 122(1), pages 113-130, March. [Downloadable!] (restricted)
  6. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-39, December. [Downloadable!] (restricted)
  7. Emilio Pagoulatos & Robert Sorensen, 1975. "Two-way International trade: An econometric analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 111(3), pages 454-465, 09. [Downloadable!] (restricted)
  8. Balassa, Bela & Bauwens, Luc, 1988. "The determinants of intra-European trade in manufactured goods," European Economic Review, Elsevier, vol. 32(7), pages 1421-1437, September. [Downloadable!] (restricted)
  9. Joe Stone & Hyun-Hoon Lee, 1995. "Determinants of intra-industry trade: A longitudinal, cross-country analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 131(1), pages 67-85, March. [Downloadable!] (restricted)
  10. Rudolf Loertscher & Frank Wolter, 1980. "Determinants of intra-industry trade: Among countries and across industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(2), pages 280-293, June. [Downloadable!] (restricted)
  11. Bela Balassa & Luc Bauwens, 1988. "Inter-industry and intra-industry specialization in manufactured goods," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 124(1), pages 1-13, March. [Downloadable!] (restricted)
  12. Harrigan, James, 1995. "The Volume of Trade in Differentiated Intermediate Goods: Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 77(2), pages 283-93, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kyoji Fukao; Toshihiro Okubo, 2004. "Why Has the Border Effect in the Japanese Market Declined?," HEI Working Papers 12-2004, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  2. Toshihiro Okubo, 2004. "Intra-industry Trade and Production Networks," HEI Working Papers 13-2004, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  3. Helena Marques & Hugh Metcalf, 2003. "What Determines Sectoral Trade in the Enlarged EU?," Discussion Paper Series 2003_8, Department of Economics, Loughborough University, revised Sep 2003. [Downloadable!]
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