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

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  • David Greenaway
  • Johan Torstensson,

Abstract

A large share of world trade, especially among the OECD countries, is twoway trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products with - in industries, whereas they import others. We examine this issue, by focusing on the shares of IIT that are vertical and horizontal and by examining price dis - persion. 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 of fering suppor t for comparative advantage models as well as newer geography models.

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Bibliographic Info

Paper provided by University of Nottingham, CREDIT in its series Discussion Papers with number 97/16.

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Handle: RePEc:not:notcre:97/16

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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/
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  1. Johan Torstensson, 1991. "Quality differentiation and factor proportions in international trade: An empirical test of the Swedish case," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(1), pages 183-194, March.
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