Trade Protectionism and Intra-industry Trade: A USA - EU Comparison
AbstractThe aim of this work is to find patterns for products included in the customs tariffs of the USA and the EU (composed of over 5000 products disaggregated at the 6 digit-level) which share similarities, defined by a set of international trade variables, namely the index of revealed comparative advantages (RCA), the Grubel-Lloyd index, and other indicators of international trade. There is a recent strand in the literature advancing a theory that links the degree of intra-industry trade with the level of protectionism. In order to test this theory we use cluster analysis as a method of data analysis and the Grubel-Lloyd index as a classification variable between groups. For each of the analyzed regions we obtain four different groups. Thereafter each of these four clusters are further characterized with the help of the other international trade indicators and the tariffs. Finally, we establish a comparison between the two regions by examining possible differences and similarities. The results show a significant difference in the tariffs applied between the USA and the EU, with the USA presenting a lower level of protectionism. Additionally, the results for the USA show a positive relationship between the degree of intra-industry trade and a lower level of protectionism, while for the EU the results are not conclusive.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49379.
Date of creation: 31 Jul 2013
Date of revision:
Trade Policy; Customs Tariff; USA; EU; Intra-industry Trade; Cluster Analysis;
Other versions of this item:
- Ferreira-Lopes, Alexandra & Sousa, Cândida & Carvalho, Helena & Crespo, Nuno, 2013. "Trade Protectionism and Intra-industry Trade: A USA - EU Comparison," MPRA Paper 49482, University Library of Munich, Germany.
- C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-06 (All new papers)
- NEP-EUR-2013-09-06 (Microeconomic European Issues)
- NEP-INT-2013-09-06 (International Trade)
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.:
- Carolyn L. Evans, 2007. "National Border Effects: Location, Not Nationality, Matters," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 347-369, 05.
- Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012.
"MAcMap-HS6 2007, an Exhaustive and Consistent Measure of Applied Protection in 2007,"
CEPII research center, issue 130, pages 99-122.
- Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012. "MAcMap-HS6 2007, an exhaustive and consistent measure of applied protection in 2007," Working Papers 2012-10, CEPII research center.
- Michael Peneder, 2003. "Industry Classifications: Aim, Scope and Techniques," Journal of Industry, Competition and Trade, Springer, vol. 3(1), pages 109-129, March.
- David Greenaway & Robert C. Hine, 1991.
"Intra-Industry Specialization, Trade Expansion and Adjustment in the European Economic Space,"
Journal of Common Market Studies,
Wiley Blackwell, vol. 29(6), pages 603-622, December.
- Greenaway, David & Hine, Robert C., 1990. "Intra Industry Specialisation, Trade Expansion and Adjustment in the European Economic Space," Working Paper Series 281, Research Institute of Industrial Economics.
- Antoine Bou�t & Yvan Decreux & Lionel Fontagné & Sébastien Jean & David Laborde, 2008.
"Assessing Applied Protection across the World,"
Review of International Economics,
Wiley Blackwell, vol. 16(5), pages 850-863, November.
- Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102.
- Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005.
"Trade in the Triad: how easy is the access to large markets?,"
Sciences Po publications
info:hdl:2441/10189, Sciences Po.
- Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1401-1430, November.
- Fontagne, Lionel & Mayer, Thierry & Zignago, Soledad, 2004. "Trade in the Triad: How Easy is the Access to Large Markets?," CEPR Discussion Papers 4442, C.E.P.R. Discussion Papers.
- Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2004. "Trade in the Triad: How Easy is the Access to Large Markets?," Working Papers 2004-04, CEPII research center.
- Salvatici, Luca & Cipollina, Maria, 2006.
"Measuring Protection: Mission Impossible?,"
18876, TRADEAG - Agricultural Trade Agreements.
- Marius Brülhart & Robert J.R. Elliott, 1998.
"Adjustment to the European single market: inferences from intra-industry trade patterns,"
Journal of Economic Studies,
Emerald Group Publishing, vol. 25(3), pages 225-247, September.
- Marius Brülhart & Robert J. R. Elliott,, . "Adjustment to the European Single Market: Inferences from Intra-Industry Trade Patterns," Discussion Papers 96/15, University of Nottingham, CREDIT.
- Ratnayake, Ravindra & Jayasuriya, Sisira, 1991. "Intra-industry trade and protection : Which way does the causation go?," Economics Letters, Elsevier, vol. 36(1), pages 71-76, May.
- Jan Jørgensen & Philipp Schröder, 2005. "Welfare-ranking ad valorem and specific tariffs under monopolistic competition," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 228-241, February.
- Klimis Vogiatzoglou, 2006. "Patterns and determinants of intra-industry trade within NAFTA," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 8(3/4), pages 262-279.
- Bohara, Alok K & Kaempfer, William H, 1991. "A Test of Tariff Endogeneity in the United States," American Economic Review, American Economic Association, vol. 81(4), pages 952-60, September.
- Neil Foster-McGregor & Robert Stehrer, 2010.
"Preferential Trade Agreements and the Structure of International Trade,"
wiiw Working Papers
61, The Vienna Institute for International Economic Studies, wiiw.
- Neil Foster & Robert Stehrer, 2011. "Preferential trade agreements and the structure of international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(3), pages 385-409, September.
- Greenaway, David & Milner, Chris, 1988. "Intra industry trade and the shifting of protection across sectors," European Economic Review, Elsevier, vol. 32(4), pages 927-945, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.