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

Author

Listed:
  • David Greenaway

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

  • Johan Torstensson

    (Lund University, FIEF, Stockholm and CEPR)

Abstract

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.

Suggested Citation

  • David Greenaway & Johan Torstensson, 2000. "Economic Geography, Comparative Advantage and Trade within Industries: Evidence from the OECD," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 260-280.
    • Handle: RePEc:ris:integr:0132
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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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