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Adjustment to the European Single Market: Inferences from Intra-Industry Trade Patterns

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  • Marius Brülhart
  • Robert J. R. Elliott,

Abstract

In the run-up to the 1992 single-market deadline, there were concerns that inter-industry adjustment pressures among EU member countries would increase. Such expectations were due partly to a perceived reversal of the post-Second World War growth in intra-industry trade (IIT). Finds that average IIT levels continued to rise during the implementation of the single market. It is argued that the concept of marginal IIT(MIIT) is of greater relevance to adjustment than “static” IIT. Some evidence is shown to support this proposition, and a comprehensive set of intra-EU MIIT indices is calculated for the 1980s. Since average MIIT levels in the 1988-92 period were higher than in the early 1980s, this analysis also supports the conclusion that, on average, adjustment to the single market was no more disruptive than that experienced during earlier stages of European integration. It also appears that the forces for inter-industry adjustment are stronger in traditional, declining industries, whereas the expansion of relatively advanced industries tends to be more evenly shared by the EU member countries.

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Bibliographic Info

Paper provided by University of Nottingham, CREDIT in its series Discussion Papers with number 96/15.

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Handle: RePEc:not:notcre:96/15

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Cited by:
  1. Ferto, Imre, 2006. "Marginal Intra-Industry Trade and Adjustment Costs in the Hungarian Food Industry," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia, International Association of Agricultural Economists 25758, International Association of Agricultural Economists.
  2. Horácio Faustino & Nuno Leitão, 2009. "Intra-industry trade and labor costs: The smooth adjustment hypothesis," Working Papers Department of Economics, ISEG - School of Economics and Management, Department of Economics, University of Lisbon 2009/17, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  3. Mary Lovely & Douglas Nelson, 2002. "Intra-industry trade as an indicator of labor market adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 138(2), pages 179-206, June.
  4. Saeed Rasekhi & Saman Ghaderi, 2012. "Marginal intra-industry trade and adjustment costs: the case study of Iran’s manufacturing industries," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, Inderscience Enterprises Ltd, vol. 4(1/2), pages 35-43.
  5. Abdul Azhar & Robert Elliott & Chris Milner, 1998. "Static and dynamic measurement of intra-industry trade and adjustment: A geometric reappraisal," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 134(3), pages 404-422, September.
  6. Imre Ferto & Károly Attila Soos, 2008. "Marginal Intra-Industry Trade and Adjustment Costs - A Hungarian-Polish Comparison," IEHAS Discussion Papers, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences 0815, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  7. Elsa de Morais Sarmento & Vanda Dores & Guida Nogueira, 2013. "A Competividade e a Diversificação da Fileira Florestal Portuguesa," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, Faculdade de Economia, Universidade de Coimbra, issue 37, pages 50-74, June.
  8. Dimitris Kallioras & George Petrakos, 2010. "Industrial growth, economic integration and structural change: evidence from the EU new member-states regions," The Annals of Regional Science, Springer, Springer, vol. 45(3), pages 667-680, December.
  9. Marius BRÜLHART, 2000. "Evolving Geographical Specialisation of European Manufacturing Industries," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 00.08, Université de Lausanne, Faculté des HEC, DEEP.
  10. Ferreira-Lopes, Alexandra & Sousa, Cândida & Carvalho, Helena & Crespo, Nuno, 2013. "Trade Protectionism and Intra-industry Trade: A USA - EU Comparison," MPRA Paper 49379, University Library of Munich, Germany.
  11. Roger White & Cheng Chen, 2012. "US manufacturing and vertical/horizontal intra-industry trade: examining the smooth adjustment hypothesis," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, Inderscience Enterprises Ltd, vol. 4(1/2), pages 1-20.
  12. AZHAR, Abdul K.M. & Elliott, Robert J.R. & Liu, Junting, 2008. "On the measurement of product quality in intra-industry trade: An empirical test for China," China Economic Review, Elsevier, Elsevier, vol. 19(2), pages 336-344, June.
  13. Marius Brülhart, 2001. "Evolving geographical concentration of European manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 137(2), pages 215-243, June.
  14. Vogiatzoglou, Klimis, 2005. "Varieties or Qualities? Horizontal and Vertical Intra-industry Trade within the NAFTA Trade Bloc," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, Estey Centre for Law and Economics in International Trade, vol. 6(2).
  15. Andrew McKay & Oliver Morrissey & Charlotte Vaillant, . "Aggregate Export and Food Crop Supply Response in Tanzania," Discussion Papers, University of Nottingham, CREDIT 98/4, University of Nottingham, CREDIT.
  16. Raúl Serrano & Vicente Pinilla, 2006. "Causes of World Trade Growth in Agricultural and Food Products, 1951 - 2000," Documentos de Trabajo, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza dt2006-07, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
  17. Fertő, Imre, 2006. "A társulási szerződés alkalmazkodási költségei a magyar élelmiszeriparban
    [The adjustment cost of the Association Agreement in the Hungarian food industry]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 799-811.
  18. Ferto, Imre, 2006. "Reconsidering Adjustment Costs of the Association Agreement. The Case of Hungarian Food Industry," 2006 Annual meeting, July 23-26, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21037, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  19. Valerija Botrić, 2013. "Determinants of Intra-industry Trade between Western Balkans and EU-15: Evidence from Bilateral Data," International Journal of Economic Sciences and Applied Research (IJESAR), Technological Educational Institute (TEI) of Kavala, Greece, Technological Educational Institute (TEI) of Kavala, Greece, vol. 6(2), pages 7-23, September.

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