The Structure of EU-CEE Intra-Industry Trade
AbstractThis paper presents an analysis of the growth and structure of EU-CEE intra-industry trade since the latter commenced their economic transition in the late 1980's. Section 2 outlines the economic rationale for intra-industry trade and its classification into horizontal and vertical two-way trade. Section 3 discusses the empirical classification of trade flows. Rather than relying on the conventional Grubel-Lloyd index as an indicator of intra-industry trade the analysis uses a decomposition due to Fontagne and Freudenberg (1997a, 1997b) which provides consistency between theory and measurement. Section 4 uses this technique to decompose EU-CEE trade flows over 1990 to 1995. Dection 6 addresses the issue of adjustment costs by distinguishing between static and dynamic, or marginal, trade flows.
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Bibliographic InfoPaper provided by College Dublin, Department of Political Economy- in its series Papers with number 99/1.
Length: 25 pages
Date of creation: 1999
Date of revision:
Contact details of provider:
Postal: Ireland; University College Dublin, Department of Political Economy, Centre for Economic Research, Belfield, Dublin 4
Fax: +353-1-283 0068
Web page: http://www.ucd.ie/economics/
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TRADE ; MONETARY UNION ; ECONOMIC INTEGRATION ; INDUSTRIAL DEVELOPMENT;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- F10 - International Economics - - Trade - - - General
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
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- Hubert Gabrisch & Maria Luigia Segnana, 2002. "Why is trade between the European Union and the transition economies vertical?," Department of Economics Working Papers 0207, Department of Economics, University of Trento, Italia.
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