Patterns and determinants of intra-industry trade within NAFTA
We analyse patterns of intra-NAFTA Intra-Industry Trade (IIT) in the USA, Canada and Mexico over the 1992â€“2002 period, by decomposing IIT into Horizontal IIT (HIIT) and Vertical IIT (VIIT). Additionally, we examine the determinants of both IIT types. Results indicate that HIIT and VIIT within NAFTA exhibit opposite trends. Specifically, HIIT is increasing, whilst VIIT exhibits a significant downward trend, indicating a restructuring in favour of IIT in horizontally differentiated products. However, VIIT still represents the dominant IIT type. Contrary to theoretical expectations, our findings for the determinants of each IIT type suggest that some crucial factors influence HIIT and VIIT in the same way. Overall, our findings imply that on the one hand, comparative advantage is loosing importance in driving intra-NAFTA trade and specialisation patterns, and that on the other hand, trade-induced adjustment costs have become less severe over time.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (2006)
Issue (Month): 3/4 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID=168|