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The intra-industry trade for a high-income country: new empirical evidence for Italy

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  • Rosanna Pittiglio, Rosanna

Abstract

This paper examines the determinants of Italian intra-industry trade in horizontally and vertically differentiated products, using a dataset which eliminates the effects linked to the hypothesis of homogeneity both between countries - when specific industry characteristics are analysed - and between sectors - within the same country. In this way, within limits, we have tried to address an issue raised by Greenaway et al. in 1999 which, in the light of the current state of the literature on intra-industry trade, does not seem to have been explicitly dealt with. Our paper highlights how strong the impact of this hypothesis could be in the analyses of the determinants of intraindustry trade in the case of Italy.

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Paper provided by Scottish Institute for Research in Economics (SIRE) in its series SIRE Discussion Papers with number 2008-17.

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Date of creation: 2008
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Handle: RePEc:edn:sirdps:30

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Keywords: intra-Industry trade; international trade; differentiated products; Italian trade;

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  1. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-39, December.
  2. Choorikkad Veeramani, 2002. "Intra-industry trade of India: Trends and country-specific factors," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(3), pages 509-533, September.
  3. Lionel Fontagné & Michaël Freudenberg, 1997. "Intra-Industry Trade: Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center.
  4. Sylvie MONTOUT & Jean-Louis MUCCHIELLI & Soledad ZIGNAGO, 2002. "Regionalization And Intra-Industry Trade. An Analysis Of Automobile Industry Trade In Nafta," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 16, pages 137-159.
  5. José Blanes & Carmela Martín, 2000. "The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(3), pages 423-441, 09.
  6. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
  7. Don Clark, 1993. "Recent evidence on determinants of intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(2), pages 332-344, June.
  8. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
  9. Lars Nilsson, 1999. "Two-way trade between unequal partners: The EU and the developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 102-127, March.
  10. Robert Ballance & Helmut Forstner & W. Sawyer, 1992. "An empirical examination of the role of vertical product differentiation in north-south trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(2), pages 330-338, June.
  11. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
  12. Emilio Pagoulatos & Robert Sorensen, 1975. "Two-way International trade: An econometric analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 111(3), pages 454-465, 09.
  13. Greenaway, David & Milner, Chris & Elliott, Robert J R, 1999. " UK Intra-industry Trade with the EU North and South," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 365-84, August.
  14. Michael Thorpe & Zhaoyang Zhang, 2005. "Study of the Measurement and Determinants of Intra-industry Trade in East Asia ," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 231-247, 06.
  15. Nuno Crespo & Maria Fontoura, 2004. "Intra-industry trade by types: What can we learn from Portuguese data?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(1), pages 52-79, March.
  16. Steven Globerman & James Dean, 1990. "Recent trends in intra-industry trade and their implications for future trade liberalization," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 126(1), pages 25-49, March.
  17. Filippo Reganati & Rosanna Pittiglio, 2005. "Vertical Intra-Industry Trade: Patterns And Determinants In The Italian Case," Quaderni DSEMS 06-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
  18. Lars Lundberg, 1982. "Intra-industry trade : The case of Sweden," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 118(2), pages 302-316, June.
  19. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December.
  20. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
  21. Veeramani C, 2010. "India's Intra- Industry Trade Under Economic Liberalization: Trends and Country Specific Factors," Working Papers id:2967, eSocialSciences.
  22. Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 356-367, June.
  23. Ernesto Somma, 1994. "Intra-industry trade in the European computers industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(4), pages 784-799, December.
  24. Joan Martín-Montaner & Vicente Ríos, 2002. "Vertical specialization and intra-industry trade: The role of factor endowments," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 340-365, June.
  25. Joakim Gullstrand, 2002. "Does the measurement of intra-industry trade matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 317-339, June.
  26. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
  27. Rosanna Pittiglio, 2005. "Commercio e Produzione Internazionale: unanalisi sul caso italiano," Quaderni DSEMS 26-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
  28. Xiaoling Hu & Yue Ma, 1999. "International intra-industry trade of China," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 82-101, March.
  29. Joe Stone & Hyun-Hoon Lee, 1995. "Determinants of intra-industry trade: A longitudinal, cross-country analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 131(1), pages 67-85, March.
  30. Giuseppe Celi, 1999. "Vertical and Horizontal Intra-Industry Trade: What is the Empirical Evidence for the UK?," CELPE Discussion Papers 49, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
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