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Measures of Intra-industry Trade as Indicators of Factor Market Disruption

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Author Info
Dixon, Peter B
Menon, Jayant

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Abstract

Concepts of intraindustry trade (IIT) are often used to indicate the extent to which trade growth is accommodated without factor market disruption. The most common indicators are movements in Grubel-Lloyd indexes. However, these are sometimes misleading. The authors develop two other indicators. The first involves changes in IIT. While this provides a measure of the contribution of IIT growth to trade growth, it can overestimate the contribution of nondisruptive trade growth. This problem is overcome by their second indicator, the contribution of dynamic intraindustry trade or matched changes in trade. All three indicators are illustrated with Australian manufacturing data. Copyright 1997 by The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 73 (1997)
Issue (Month): 222 (September)
Pages: 233-37
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Handle: RePEc:bla:ecorec:v:73:y:1997:i:222:p:233-37

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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. Pomfret, Richard, 1985. "Categorical Aggregation and International Trade: A Comment," Economic Journal, Royal Economic Society, vol. 95(378), pages 483-85, June. [Downloadable!] (restricted)
  2. Finger, J M, 1975. "Trade Overlap and Intra-Industry Trade," Economic Inquiry, Oxford University Press, vol. 13(4), pages 581-89, December.
  3. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October. [Downloadable!] (restricted)
  4. Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-23, July. [Downloadable!] (restricted)
  5. Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, vol. 93(372), pages 900-908, December. [Downloadable!] (restricted)
  6. Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April. [Downloadable!] (restricted)
  7. Jayant Menon, 1994. "Trade Liberalisation, Closer Economic Relations and Intra-Industry Specialisation," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(2), pages 31-42. [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. Anonymous, 2005. "Trends in Australian Agriculture," Commission Research Papers 31903, Productivity Commission. [Downloadable!]
  2. Abdul K. M. Azhar & Robert J. R. Elliott, 2008. "On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 225-247, July. [Downloadable!] (restricted)
    Other versions:
  3. David Greenaway & Michelle Haynes & Chris Milner, 2002. "Adjustment, employment characteristics and intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 254-276, June. [Downloadable!] (restricted)
  4. Jayant Menon, 1996. "How Reliable are Intra-Industry Trade Measures as Indicators of Adjustment Costs?," Centre of Policy Studies/IMPACT Centre Working Papers g-119, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  5. Abdul Azhar & Robert Elliott, 2003. "On the measurement of trade-induced adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 139(3), pages 419-439, September. [Downloadable!] (restricted)
    Other versions:
  6. Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April. [Downloadable!] (restricted)
  7. Jorge Selaive, 1998. "Comercio Intraindustrial en Chile," Working Papers Central Bank of Chile 44, Central Bank of Chile. [Downloadable!]
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