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The Structure of EU-CEE Intra-Industry Trade

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Author Info

  • Thom, R.

Abstract

This 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 Info

Paper provided by College Dublin, Department of Political Economy- in its series Papers with number 99/1.

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Length: 25 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:dublec:99/1

Contact details of provider:
Postal: Ireland; University College Dublin, Department of Political Economy, Centre for Economic Research, Belfield, Dublin 4
Phone: +353-1-7067777
Fax: +353-1-283 0068
Web page: http://www.ucd.ie/economics/
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Related research

Keywords: TRADE ; MONETARY UNION ; ECONOMIC INTEGRATION ; INDUSTRIAL DEVELOPMENT;

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Cited by:
  1. 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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