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On Intra-Industry Trade in Intermediates

Author

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  • Schüler, Martin Kurt

    (Institut fur Europaische Wirtschaftsforschung, Bergische Universitat, Gesamtholchschule Wuppertal)

Abstract

It has been claimed that vertical specialization explains substantial parts of intra-industry trade as well as its increase over time. By splitting up intra-industry trade of Spain and Turkey into different types of exchange according to the end-use of the imports and exports, the article shows that traditional two-stage patterns of vertical specialization, such as assembly activities, contribute only marginally to the observed intra-industry trade. The importance of intra-industry trade in intermediates, however, cannot be overstated. The expansion of the industrializing countries’ intra-industry trade was sustained by an increased exchange of intermediates against intermediates. But substantial doubts remain as to whether this is indeed solely due to vertical specialization.

Suggested Citation

  • Schüler, Martin Kurt, 1995. "On Intra-Industry Trade in Intermediates," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 48(1), pages 67-84.
    • Handle: RePEc:ris:ecoint:0407
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    Cited by:

    1. Kemal Türkcan, 2009. "Vertical Intra-Industry Trade: An Empirical Examination of the Austria’s Auto-Parts Industry," FIW Working Paper series 030, FIW.
    2. Kandogan, Yener, 2009. "A Gravity Model for Components of Imports," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 5(1-2), pages 1-17, April.

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