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Intraindustry Trade:

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  • Marvel, Howard P
  • Ray, Edward John

Abstract

This paper provides an empirical analysis of the determinants of intraindustry trade. The authors demonstrat that two-way trade flows occur where conditions are favorable to international specialization consistent with the Stigler-Williamson analysis of the division of labor. The results are inconsistent wit h the prevailing product differentiation-cum-scale economies model of intraindustry trade. In addition, the authors show that intraindustr y trade has a significant impact on protectionist pressures. Exports of closely related products have the effect of mitigating the tariff- raising effects that imports would otherwise exert. Copyright 1987 by University of Chicago Press.

Suggested Citation

  • Marvel, Howard P & Ray, Edward John, 1987. "Intraindustry Trade:," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1278-1291, December.
    • Handle: RePEc:ucp:jpolec:v:95:y:1987:i:6:p:1278-91
    DOI: 10.1086/261515
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