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Vertical Intra-Industry Trade: Patterns And Determinants In The Italian Case

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  • Filippo Reganati

    ()

  • Rosanna Pittiglio

Abstract

Using a cross-country analysis, this paper examines the determinants of the Italian intra-industry trade in vertically differentiated products. By considering the degree of specialization by quality within industries, we found that Italys IIT in low-quality products is higher the lower the factor endowment difference and the higher the technological gap with the partner country. These findings confirm the peculiarity of the Italian specialization model which is strongly different from that of other main industrialized countries which are located mainly at the higher end of the price-quality spectrum

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Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 06-2005.

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Date of creation: Feb 2005
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Handle: RePEc:ufg:qdsems:06-2005

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  1. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December.
  2. Kiertisak Toh, 1982. "A cross-section analysis of intra-industry trade in U.S. manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 118(2), pages 281-301, June.
  3. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-39, December.
  4. P. Tharakan, 1986. "The intra-industry trade of Benelux with the developing world," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 122(1), pages 131-149, March.
  5. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February.
  6. Greenaway, David & Milner, Chris & Elliott, Robert J R, 1999. " UK Intra-industry Trade with the EU North and South," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 365-84, August.
  7. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 62-81, March.
  8. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
  9. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
  10. Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-23, July.
  11. Rudolf Loertscher & Frank Wolter, 1980. "Determinants of intra-industry trade: Among countries and across industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(2), pages 280-293, June.
  12. 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.
  13. Kamal Abd-el-Rahman, 1991. "Firms’ competitive and national comparative advantages as joint determinants of trade composition," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(1), pages 83-97, March.
  14. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
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Cited by:
  1. Rosanna Pittiglio, Rosanna, 2008. "The intra-industry trade for a high-income country: new empirical evidence for Italy," SIRE Discussion Papers 2008-17, Scottish Institute for Research in Economics (SIRE).
  2. Rosanna Pittiglio & Filippo Reganati, 2012. "Vertical intra-industry trade in higher and lower quality: a new approach of measuring country-specific determinants," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 44-62.
  3. Hasan Faruq, 2006. "New Evidence on Product Quality and Trade," Caepr Working Papers 2006-019, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.

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