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Intra-Industry, Intra-Product, and Inter-Product Trade

Author

Listed:
  • Michaely Michael

    (The Hebrew University of Jerusalem, Jerusalem, Israel)

  • Wajnryt David

    (The Foreign-Trade Section, Macroeconomics, The Central Bureau of Statistics of Israel, Jerusalem, Israel)

Abstract

The study starts with clarifying the distinction between intra-product and inter-product trade as origins of intra-industry trade. The empirical analysis shows that over the last half century intra-industry trade has strongly intensified, though this trend became less pronounced during the last two decades. Intra-industry trade characterizes the trade flows of Europe distinctly more than of any other major geographical region. It is clearly related to a country’s level of per-capita income; to its size, as measured by aggregate income; to the share of the manufacturing sector in the country’s trade; and, most strongly, to the level of commodity diversification of a country’s trade.

Suggested Citation

  • Michaely Michael & Wajnryt David, 2017. "Intra-Industry, Intra-Product, and Inter-Product Trade," Global Economy Journal, De Gruyter, vol. 17(3), pages 1-11, September.
    • Handle: RePEc:bpj:glecon:v:17:y:2017:i:3:p:11:n:5
    DOI: 10.1515/gej-2017-0024
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    References listed on IDEAS

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    1. Corden, W. M., 1971. "The substitution problem in the theory of effective protection," Journal of International Economics, Elsevier, vol. 1(1), pages 37-57, February.
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