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Bilateral Intra-Industry Trade between Countries with Different Factor Endowment Patterns

In: Intra-Industry Trade

Author

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  • P. K. M. Tharakan

Abstract

In this paper we focus attention on the bilateral intra-industry trade (IIT)1 in manufactures between selected Developed Market Economies (DMEs)2 and the Developing Countries (DCs).3 In spite of the rapidly expanding literature on various aspects of intra-industry trade, the study of such trade flows of the DCs and the theoretical and policy implications thereof remain a rather neglected area. Nevertheless recent research suggests that the IIT of some of the Newly Industrialised Countries (NICs) has increased more rapidly than that of the DMEs (Lee, 1987). Further, there is some evidence of the prevalence of intra-industry trade in manufactures between countries with clearly different factor endowment patterns (Tharakan, 1986), although an extensive analysis of such trade at highly disaggregative levels in terms of products and countries is yet to be undertaken.

Suggested Citation

  • P. K. M. Tharakan, 1989. "Bilateral Intra-Industry Trade between Countries with Different Factor Endowment Patterns," Palgrave Macmillan Books, in: P. K. M. Tharakan & Jacob Kol (ed.), Intra-Industry Trade, chapter 5, pages 69-91, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-10464-2_5
    DOI: 10.1007/978-1-349-10464-2_5
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    Cited by:

    1. Rodas-Martini, Pablo, 1998. "Intra-industry trade and revealed comparative advantage in the Central American Common Market," World Development, Elsevier, vol. 26(2), pages 337-344, February.
    2. Fithra Faisal Hastiadi, 2011. "East Asian Regionalism: The Need For Asean+3 Fta," Journal of Global Business and Economics, Global Research Agency, vol. 3(1), pages 31-56, July.
    3. Horácio Faustino, 2008. "Intra-Industry Trade and Revealed Comparative Advantage: An Inverted-U Relationship," Working Papers Department of Economics 2008/03, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

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