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Intra-industry trade with emergent countries: what can we learn from spanish data?


  • Juliette Milgram-Baleix

    () (Granada University)

  • Ana Isabel Moro-Egido

    () (Granada University)


In this paper, we study the nature of Spanish intra-industry trade and find that intra-industry trade with CEEC, Asian and Mediterranean countries has increased considerably since the middle of the Nineties. The second aim of the paper is to study if the comparative advantage argument also explains the vertical intra-industry trade between different income countries. According to OLS estimations, technological differences increase DVIIT while physical capital differences lead to its decrease. The results obtained applying the Heckman method support the idea that differences in physical capital reduce the probability of IIT to occur but the level of vertical and horizontal IIT is more accurately explained by the proximity of partners, similarity in development level and size of market than by the differences in physical capital endowments. The variables considered, mostly country-specific, do have the same impact on vertical and horizontal IIT with emergent countries.

Suggested Citation

  • Juliette Milgram-Baleix & Ana Isabel Moro-Egido, 2005. "Intra-industry trade with emergent countries: what can we learn from spanish data?," Economics Bulletin, AccessEcon, vol. 6(12), pages 1-17.
  • Handle: RePEc:ebl:ecbull:eb-05f10004

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    References listed on IDEAS

    1. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    2. José Blanes & Carmela Martín, 2000. "The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(3), pages 423-441, September.
    3. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
    4. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
    5. 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.
    6. Joan Martín-Montaner & Vicente Ríos, 2002. "Vertical specialization and intra-industry trade: The role of factor endowments," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 340-365, June.
    7. Durkin, John T, Jr & Krygier, Markus, 2000. "Differences in GDP Per Captia and the Share of Intraindustry Trade: The Role of Vertically Differentiated Trade," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 760-774, November.
    8. 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 1505-1518, November.
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    11. Nuno Crespo & Maria Fontoura, 2004. "Intra-industry trade by types: What can we learn from Portuguese data?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(1), pages 52-79, March.
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    Cited by:

    1. PAPACCIO, Anna, 2013. "Bilateralism and Multilateralism: a Network Approach," CELPE Discussion Papers 125, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    2. Bernardina Algieri, 2007. "Trade Specialisation Dynamics in Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(2), pages 232-258, June.

    More about this item


    Comparative advantage;

    JEL classification:

    • F1 - International Economics - - Trade


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