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Intra-industry trade in Latin America and the Caribbean

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Author Info

  • Fullerton, Thomas M., Jr.
  • Sawyer, W. Charles
  • Sprinkle, Richard L.

Abstract

An increasingly important component of total world trade is intra-industry trade (IIT). The large volume of literature on IIT is reflective of this importance. However, this extensive literature has focused almost completely on explaining the causes of IIT. This focus has left a puzzling gap in the literature. Specifically, it is almost impossible to determine the level of IIT for a particular country or region. Further, there is almost no information on the level of IIT at the industry level either globally or for a region or country. In this paper we provide estimates of IIT for the world and for the countries of the Western Hemisphere. Further, we provide estimates of IIT for ten different SITC product categories on the same basis. The findings of the paper indicate that in most industries, IIT in Latin America is substantially lower overall than the world average. There are, however, substantial variations observed both by country and by industry. Because the results are the first available for the region as a whole, they should allow researchers to get a better picture of the extent of IIT in Latin America and the Caribbean by country and by industry.

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File URL: http://mpra.ub.uni-muenchen.de/34854/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34854.

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Date of creation: 2010
Date of revision: 2011
Publication status: Published in International Trade Journal 1.25(2011): pp. 74-111
Handle: RePEc:pra:mprapa:34854

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Keywords: Intra-industry trade; Latin America;

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References

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  1. Finger, J M, 1975. "Trade Overlap and Intra-Industry Trade," Economic Inquiry, Western Economic Association International, vol. 13(4), pages 581-89, December.
  2. Don P Clark & Thomas M Fullerton Jr & Duane Burdorf, 2004. "Intra-industry Trade Between the United States and Mexico: 1993- 1998," International Trade 0407007, EconWPA.
  3. Dale Truett & Lila Truett, 1998. "A cost function analysis of the Mexican nonelectrical machinery industry," Applied Economics, Taylor & Francis Journals, vol. 30(8), pages 1027-1035.
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  8. Yeats, Alexander J, 1998. "Does Mercosur's Trade Performance Raise Concerns about the Effects of Regional Trade Arrangements?," World Bank Economic Review, World Bank Group, vol. 12(1), pages 1-28, January.
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  10. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 77-100, March.
  11. Joakim Gullstrand, 2002. "Does the measurement of intra-industry trade matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(2), pages 317-339, June.
  12. Gerardo Esquivel, 1992. "Una nota sobre el comercio intraindustrial México-Estados Unidos," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 7(1), pages 119-137.
  13. Lila J. Truett & Dale B. Truett, 2007. "Nafta And The Maquiladoras: Boon Or Bane?," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 374-386, 07.
  14. Beverley Mullings, 2004. "Globalization and the territorialization of the new Caribbean service economy," Journal of Economic Geography, Oxford University Press, vol. 4(3), pages 275-298, June.
  15. Don P. CLARK, 2007. "Intraindustry Specialization And The United States-Central America-Dominican Republic Free Trade Agreement," The Developing Economies, Institute of Developing Economies, vol. 45(4), pages 491-506.
  16. Steven Globerman, 1992. "North American trade liberalization and intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(3), pages 487-497, September.
  17. Lionel Fontagné & Michael Freudenberg & Guillaume Gaulier, 2006. "A Systematic Decomposition of World Trade into Horizontal and Vertical IIT," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 459-475, October.
  18. Felix, David, 1989. "Import substitution and late industrialization: Latin America and Asia compared," World Development, Elsevier, vol. 17(9), pages 1455-1469, September.
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