IDEAS home Printed from https://ideas.repec.org/p/ags/copspp/266373.html

Measures of Intra-Industry Trade as Indicators of Factor Market Disruption

Author

Listed:
  • Dixon, Peter B.
  • Menon, Jayant

Abstract

Intra-industry trade (IIT) related concepts have often been used as indicators of the extent to which trade growth can be accommodated without factor market disruption. The most commonly used indicators have been movements in the Grubel-Lloyd (GL) index. However, GL-based indicators are sometimes misleading and, at best, they give qualitative information only. We develop two other indicators. The first involves computing changes in LIT. While this method provides a precise measure of the contribution of growth in LIT to total trade (TT) growth, it tends to overestimate the contribution of non-disruptive trade growth. This problem is overcome by our second indicator, dynamic intra-industry trade or matched changes in trade. All our indicators .are illustrated with data for 133 Australian manufacturing industries.

Suggested Citation

  • Dixon, Peter B. & Menon, Jayant, "undated". "Measures of Intra-Industry Trade as Indicators of Factor Market Disruption," Center of Policy Studies (COPS) Impact Project Papers 266373, Monash University Center of Policy Studies.
    • Handle: RePEc:ags:copspp:266373
    DOI: 10.22004/ag.econ.266373
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/266373/files/monash-046.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/266373/files/monash-046.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.266373?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:copspp:266373. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.