C. Veeramani (Indira Gandhi Institute of Development Research, Mumbai, India)
Abstract
The paper analyses the industry-specific determinants of intra-industry trade (IIT) in Indian manufacturing industries. We find that the intensity of IIT would be larger if an industry is characterized by a greater degree of product differentiation. The intensity of IIT reduces if the spectrum of production activities in an industry is confined to few locations because of plant level scale economies. We find a negative relationship between IIT and the extent of multinational involvement, indicating that foreign direct investment replaces export sales of differentiated products to the host countries.
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Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.
Volume (Year): 42 (2007) Issue (Month): 2 (December) Pages: 211-229 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies F14 - International Economics - - Trade - - - Country and Industry Studies of Trade