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Economic Geography, Comparative Advantage and Trade within Industries: Evidence from the OECD

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Author Info
Greenaway, David () (CREDIT, University of Nottingham)
Torstensson, Johan (Lund University and FIEF)

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Abstract

A large share of world trade, especially among the OECD countries, is two-way trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products within industries, whereas they import others. We examine this issue, by means of regression analysis, by examining the shares of IIT that are vertical and horizontal and by examining price dispersion. The regression results suggest that an abundant human capital endowment as well as a large domestic market increases the quality of OECD-countries´ manufacturing exports, thus offering support for comparative advantage models as well as newer geography models. But, human capital becomes an increasingly important determinant of quality over time.

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Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 144.

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Length: 24 pages
Date of creation: 22 Jul 1997
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Handle: RePEc:hhs:fiefwp:0144

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Related research
Keywords: comparative advantage economic geography intra-industry trade vertical differentiation

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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jim Malley & Thomas Moutos, 2001. "Do Excessive Wage Increases Raise Imports? Theory and Evidence," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  2. Afontsev Serguey, 2002. "Endogenous Tariff Protection and the Level of Trade Distortions in Russia," EERC Working Paper Series 01-07e, EERC Research Network, Russia and CIS. [Downloadable!]
  3. Giuseppe Celi, 2004. "Quality Differentiation, Vertical Disintegration and The Labour Market Effects of Intra-Industry Trade," CELPE Discussion Papers 86, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
  4. Colin A. Carter & Xianghong Li, 2004. "Changing trade patterns in major OECD countries," Applied Economics, Taylor and Francis Journals, vol. 36(14), pages 1501-1511, August. [Downloadable!] (restricted)
  5. Alessia Amighini & Stefano Chiarlone, 2003. "Rischi e opportunità dell’integrazione commerciale cinese per la competitività internazionale dell'Italia," CESPRI Working Papers 149, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Nov 2003. [Downloadable!]
  6. Alessia Amighini & Stefano Chiarlone, 2004. "Risk of the Chinese trade integration for the Italian trade specialisation," LIUC Papers in Economics 150, Cattaneo University (LIUC). [Downloadable!]
  7. Stefano Chiarlone, 2000. "Evidence of Product Differentiation and Relative Quality in Italian Trade," CESPRI Working Papers 114, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2000. [Downloadable!]
    Other versions:
  8. Stefano Chiarlone, 2000. "Import Demand with Product Differentiation: Disaggregated Estimation of Italian Sectoral Elasticities," CESPRI Working Papers 113, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2000. [Downloadable!]
    Other versions:
  9. Fabrice Darrigues & Jean-Marc Montaud, 2001. "Les pays du sud doivent-ils craindre l'élargissement de l'UEM aux PECO ?," Documents de travail 63, Centre d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  10. Kemal Turkcan, 2005. "Determinants of Intra-Industry Trade in Final Goods and Intermediate Goods between Turkey and Selected OECD Countries," Istanbul University Econometrics and Statistics e-Journal, Department of Econometrics, Faculty of Economics, Istanbul University, vol. 1(1), pages 21-40, May. [Downloadable!]
  11. Elisa Álvarez López & Rafael Myro Sánchez, 2005. "Specialization and openness to foreign trade in the European Union," Applied Economics Letters, Taylor and Francis Journals, vol. 12(13), pages 805-810, October. [Downloadable!] (restricted)
  12. Braunerhjelm, Pontus & Thulin, Per, 2006. "Can Countries Create Comparative Advantages? R&D-expenditures, high-tech exports and country size in 19 OECD-countries, 1981-1999," Working Paper Series in Economics and Institutions of Innovation 61, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies. [Downloadable!]
    Other versions:
  13. Giuseppe Celi & Alasdair Smith, 1999. "Quality Differentiation and the Labour Market Effects of International Trade," CELPE Discussion Papers 50, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
  14. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  15. Hedi Bchir & Yvan Decreux & Jean-Louis Guerin & Sebastien Jean, 2002. "MIRAGE, a Computable General Equilibrium Model for Trade Policy Analysis," Working Papers 2002-17, CEPII research center. [Downloadable!]
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