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An Account of Global Intra-industry Trade, 1962-2006

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  • Marius Brülhart

Abstract

This paper provides a comprehensive description of intra-industry trade patterns and trends, using data on more than 39 million bilateral trade flows. In 2006, 27 percent of global trade was intra-industry if measured at the finest (5-digit) level of statistical aggregation, and 44 percent if measured at a coarser (3-digit) level of statistical aggregation. The observed steady growth in global intra-industry trade since the early 1960s suggests a process of world-wide structural convergence: economies are becoming more similar over time in terms of their sectoral compositions. In particular since the 1990s, this trend appears to be driven to a significant extent by the international fragmentation of vertical production chains. Intra-industry trade is a high-income and middle-income country phenomenon: African trade remains overwhelmingly of the inter-industry type. Moreover, the observed increase in intra-industry trade was not accompanied by a comparable increase in marginal intra-industry trade, suggesting that trade-induced adjustment pressures remain potentially important.

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Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 08/08.

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Handle: RePEc:not:notgep:08/08

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Keywords: intra-industry trade; marginal intra-industry trade;

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  1. Hummels, D. & Levinsohn, J., 1993. "Monopolistic Competition and International Trade: Reconsidering the Evidence," Working Papers 339, Research Seminar in International Economics, University of Michigan.
  2. Venables Anthony J. & Rice Patricia G. & Stewart Martin, 2003. "The Geography of Intra-Industry Trade: empirics," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-25, September.
  3. Lovely, Mary E & Nelson, Douglas R, 2000. "Marginal Intraindustry Trade and Labor Adjustment," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 436-47, August.
  4. Jeffrey H. Bergstrand & Peter Egger, 2006. "Trade Costs and Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 433-458, October.
  5. Robert Elliott & David Greenaway & Robert Hine, 2000. "Tests for factor homogeneity and industry classification," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(2), pages 355-371, June.
  6. Manuel Cabral & Joana Silva, 2006. "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 496-520, October.
  7. Marius Brülhart, 1994. "Marginal intra-industry trade: Measurement and relevance for the pattern of industrial adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 600-613, September.
  8. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
  9. Joaquín Oliveras & Inés Terra, 1997. "Marginal intra-industry trade index: The period and aggregation choice," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(1), pages 170-178, March.
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Cited by:
  1. Jámbor, Attila, 2014. "A horizontális és vertikális ágazaton belüli agrárkereskedelem meghatározó tényezői az EU új tagországaiban
    [Determinants of horizontal and vertical intra-industry agri-food trade in th
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 544-565.
  2. Aleksandra Parteka, 2013. "Trade Diversity and Stages of Development–Evidence on EU Countries," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 30.
  3. Arvind Subramanian & Martin Kessler, 2013. "The Hyperglobalization of Trade and Its Future," Working Paper Series WP13-7, Peterson Institute for International Economics.

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