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Horizontal and vertical intra-industry trade in Australian manufacturing: does trade liberalization have any impact?

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  • Kishor Sharma

Abstract

This paper contributes to the literature on intra-industry trade (IIT) by disentangling such trade into horizontally and vertically differentiated products, and investigating their determinants in the context of trade liberalization in Australia. IIT in Australian manufacturing has increased following trade liberalization in 1980s and is increasingly dominated by vertically differentiated products. Industry level evidence confirms that the failure to segregate IIT into horizontally and vertically differentiated products produces misleading results as their determinants differ. Also, structural changes brought about by the policy liberalization appear to have an impact on total as well vertical IIT.

Suggested Citation

  • Kishor Sharma, 2004. "Horizontal and vertical intra-industry trade in Australian manufacturing: does trade liberalization have any impact?," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1723-1730.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:15:p:1723-1730
    DOI: 10.1080/0003684042000218534
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    Citations

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    Cited by:

    1. Abdul K. M. Azhar & Robert J. R. Elliott, 2008. "On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 225-247, July.
    2. Snježana Brkić & Radovan Kastratović & Mirela Abidović Salkica, 2021. "Patterns And Determinants Of Intra-Industry Trade In Agri-Food Products Between Bosnia And Herzegovina And Cefta 2006," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(229), pages 7-36, April – J.
    3. Justyna Lapinska, 2016. "Determinant Factors Of Intra-Industry Trade: The Case Of Poland And Its European Union Trading Partners," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 251-264, June.
    4. AZHAR, Abdul K.M. & Elliott, Robert J.R. & Liu, Junting, 2008. "On the measurement of product quality in intra-industry trade: An empirical test for China," China Economic Review, Elsevier, vol. 19(2), pages 336-344, June.
    5. Stojčić, Nebojša & Vojinić, Perica & Aralica, Zoran, 2018. "Trade liberalization and export transformation in new EU member states," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 114-126.
    6. Pinar Narin Emirhan, 2005. "Determinants of Vertical Intra-Industry Trade of Turkey: Panel Data Approach," Discussion Paper Series 05/05, Dokuz Eylül University, Faculty of Business, Department of Economics, revised 23 Nov 2005.
    7. Maylene Y. Damoense-Azevedo & André C. Jordaan, 2012. "Factors influencing bilateral intra-industry trade in the auto industry: the case of South Africa," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 63-82.
    8. Andrew Marks, 2009. "Intra‐Industry Trade and Adjustment Costs in the Australian Textile, Clothing and Footwear and Motor Vehicle Industries: A Comparative Case Study Approach," Economic Papers, The Economic Society of Australia, vol. 28(4), pages 323-336, December.
    9. Sagnik Bagchi & Surajit Bhattacharyya, 2021. "Industry-level determinants of India’s vertical and horizontal IIT," Indian Economic Review, Springer, vol. 56(1), pages 113-145, June.

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