Measures of Intra-industry Trade as Indicators of Factor Market Disruption
Concepts of intraindustry trade (IIT) are often used to indicate the extent to which trade growth is accommodated without factor market disruption. The most common indicators are movements in Grubel-Lloyd indexes. However, these are sometimes misleading. The authors develop two other indicators. The first involves changes in IIT. While this provides a measure of the contribution of IIT growth to trade growth, it can overestimate the contribution of nondisruptive trade growth. This problem is overcome by their second indicator, the contribution of dynamic intraindustry trade or matched changes in trade. All three indicators are illustrated with Australian manufacturing data. Copyright 1997 by The Economic Society of Australia.
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Volume (Year): 73 (1997)
Issue (Month): 222 (September)
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References listed on IDEAS
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- Jayant Menon, 1994. "Trade Liberalisation, Closer Economic Relations and Intra-Industry Specialisation," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(2), pages 31-42.
- Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April.
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- Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
- Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, vol. 93(372), pages 900-908, December.
- Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-223, July.
- Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 356-367, June.
- Pomfret, Richard, 1985. "Categorical Aggregation and International Trade: A Comment," Economic Journal, Royal Economic Society, vol. 95(378), pages 483-485, June.
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