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Dissecting intra-industry trade

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  • Van Biesebroeck, Johannes

Abstract

We show that gradually most U.S. manufacturing trade has become intra-industry, even at the finest level of aggregation. This also holds for the E.U. and increasingly for China, but only if goods are not classified by quality; Japanese trade remains far more inter-industry.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 110 (2011)
Issue (Month): 2 (February)
Pages: 71-75

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Handle: RePEc:eee:ecolet:v:110:y:2011:i:2:p:71-75

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: New trade theory Trade overlap Product differentiation Product quality;

References

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  1. David Greenaway & Johan Torstensson,, . "Back to the Future: Taking Stock on Intra-Industry Trade," Discussion Papers 96/14, University of Nottingham, CREDIT.
  2. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  3. Jianhong Zhang & Arjen van Witteloostuijn & Chaohong Zhou, 2005. "Chinese Bilateral Intra-Industry Trade: A Panel Data Study for 50 Countries in the 1992–2001 Period," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(3), pages 510-540, October.
  4. Krugman, Paul, 1995. "Increasing returns, imperfect competition and the positive theory of international trade," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 24, pages 1243-1277 Elsevier.
  5. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
  6. Ng, Francis & Yeats, Alexander, 1999. "Production sharing in East Asia : who does what for whom, and why?," Policy Research Working Paper Series 2197, The World Bank.
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