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Industrial Structure and Australia– UK Intra‐Industry Trade

Author

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  • JAYANT MENON
  • DAVID GREENAWAY
  • CHRIS MILNER

Abstract

This paper tests industry‐specific hypotheses of the determinants of intra‐industry trade in the context of Australia‐UK trade. In doing so it separates intra‐industry trade (ITT) into ITT in horizontally differentiated products and ITT in vertically differentiated products. It finds that the latter is the dominant former of ITT. Further the paper investigates the robustness of empirical results on testing industry‐specific hypotheses to the choice of national (UK or Australian) industrial structure characteristics. The assumption of uniform industrial structures across countries adopted in other studies is shown not to be justified.

Suggested Citation

  • Jayant Menon & David Greenaway & Chris Milner, 1999. "Industrial Structure and Australia– UK Intra‐Industry Trade," The Economic Record, The Economic Society of Australia, vol. 75(1), pages 19-27, March.
    • Handle: RePEc:bla:ecorec:v:75:y:1999:i:1:p:19-27
    DOI: 10.1111/j.1475-4932.1999.tb02430.x
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    References listed on IDEAS

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    Cited by:

    1. Sagnik Bagchi & Surajit Bhattacharyya, 2021. "Industry-level determinants of India’s vertical and horizontal IIT," Indian Economic Review, Springer, vol. 56(1), pages 113-145, June.

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