Varieties or Qualities? Horizontal and Vertical Intra-industry Trade within the NAFTA Trade Bloc
This article investigates empirically the nature and the dynamics of intra-regional trade in North America. Specifically, we analyze intra-NAFTA patterns of horizontal and vertical intra-industry trade - H(V)IIT - in the United States, Canada and Mexico over the 1992-2002 period and examine some industry characteristics of observed IIT patterns for each IIT component. The results indicate that though HIIT and VIIT exhibit different trends, both IIT types are important in labour/resource-intensive sectors, suggesting that comparative advantage may be an important factor in intra-NAFTA IIT. The most striking finding is that HIIT is consistently increasing, while VIIT exhibits a significant downward trend. Hence, our findings suggest that intra-NAFTA IIT has increasingly become an exchange of different varieties rather than different qualities, indicating to some extent an economic convergence process within the NAFTA trade bloc.
Volume (Year): 06 (2005)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: Suite 820, 410 22nd Street East, Saskatoon SK, S7K 5T6|
Phone: (306) 244-4800
Fax: (306) 244-7839
Web page: http://www.esteycentre.com/
More information through EDIRC
References listed on IDEAS
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.:
- Hummels, D. & Levinsohn, J., 1993.
"Monopolistic Competition and International Trade: Reconsidering the Evidence,"
339, Research Seminar in International Economics, University of Michigan.
- David Hummels & James Levinsohn, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 799-836.
- David Hummels & James Levinsohn, 1993. "Monopolistic Competition and International Trade: Reconsidering the Evidence," NBER Working Papers 4389, National Bureau of Economic Research, Inc.
- Fukao, Kyoji & Ishido, Hikari & Ito, Keiko, 2003.
"Vertical intra-industry trade and foreign direct investment in East Asia,"
Journal of the Japanese and International Economies,
Elsevier, vol. 17(4), pages 468-506, December.
- Kyoji Fukao & Hikari Ishido & Keiko Ito, 2003. "Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia," Discussion papers 03001, Research Institute of Economy, Trade and Industry (RIETI).
- Fukao, Kyoji & Ishido, Hikari & Ito, Keiko, 2003. "Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia," Discussion Paper Series a434, Institute of Economic Research, Hitotsubashi University.
- Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
- Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
- Mary E. Burfisher & Sherman Robinson & Karen Thierfelder, 2001. "The Impact of NAFTA on the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 125-144, Winter.
- Lionel Fontagné & Michaël Freudenberg, 1997. "Intra-Industry Trade: Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center.
- Kamal Abd-el-Rahman, 1991. "Firms’ competitive and national comparative advantages as joint determinants of trade composition," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(1), pages 83-97, March.
- 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.
- Greenaway, David & Hine, Robert C & Milner, Chris, 1995. "Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(433), pages 1505-18, November.
- 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.
- Stiglitz, Joseph E, 1987. "The Causes and Consequences of the Dependence of Quality on Price," Journal of Economic Literature, American Economic Association, vol. 25(1), pages 1-48, March.
- Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
- Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
- Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
- 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.
- Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
- Marius Brulhart & Michael Thorpe, 2001. "Export growth of NAFTA members, intra-industry trade and adjustment," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 3(1), pages 94-110.
- Lionel Fontagné & Michaël Freudenberg & Nicolas Peridy, 1997. "Trade Patterns Inside the Single Market," Working Papers 1997-07, CEPII research center.
- Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
- Dene Hurley, 2003. "Horizontal and Vertical Intra-Industry Trade: The Case of Asean Trade in Manufactures," International Economic Journal, Taylor & Francis Journals, vol. 17(4), pages 1-14.
- 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;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 77-100, March.
- Jacob Kol & L. Mennes, 1989. "Corrections for trade imbalance: A survey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 125(4), pages 703-717, December.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ags:ecjilt:23887. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.