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Economic Geography, Comparative Advantage and Trade within Industries: Evidence from the OECD

  • Greenaway, David

    ()

    (Centre for Research in Globalisation and Labour Markets University of Nottingham)

  • Torstensson, Johan

    (Lund University, FIEF, Stockholm and CEPR)

A large share of world trade, especially among the OECD countries, is twoway trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products with - in industries, whereas they import others. We examine this issue, by focusing on the shares of IIT that are vertical and horizontal and by examining price dis - persion. The regression results suggest that an abundant human capital endowment as well as a large domestic market increases the quality of OECD-countries’ manufacturing exports, thus of fering suppor t for comparative advantage models as well as newer geography models.

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Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 15 (2000)
Issue (Month): ()
Pages: 260-280

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Handle: RePEc:ris:integr:0132
Contact details of provider: Web page: http://www.e-jei.org/

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