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Two-way international trade and production in Italy: a country/industry specific analysis

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  • Filippo Reganati
  • Rosanna Pittiglio

Abstract

Two-way International Trade and Production in Italy: A Country/industry Specific Analysis (by Filippo Reganati, Rosanna Pittiglio) - ABSTRACT: Economic interactions among high-income developed countries are characterized by high degrees of both intra-industry trade and intra-industry affiliate production and sales. Similar high-income countries both heavily trade with and invest into each other. This paper examines the determinants of Italian intra-industry trade and intra-industry production with most European trading partners using a dataset where variables are different not only between countries but also between sectors of the same country. Using different econometric methods, the results obtained suggest that intra-industry trade and intra-industry production tend to share the same determinants; in particular they are higher as the two partner countries are more similar in relative factor endowments (physical and technological capital), in relative country size and are less geographically distant. Keywords: Intra-industry Trade, Intra-industry Foreign Direct Investment

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Article provided by FrancoAngeli Editore in its journal STUDI ECONOMICI.

Volume (Year): 2007/91 (2007)
Issue (Month): 91 ()
Pages: 75-89

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Handle: RePEc:fan:steste:v:html10.3280/ste2007-091004

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  1. 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.
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