IDEAS home Printed from https://ideas.repec.org/p/cop/wpaper/g-113.html
   My bibliography  Save this paper

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

Author

Listed:
  • Peter B. Dixon
  • Jayant Menon

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 IIT. While this method provides a precise measure of the contribution of growth in IIT 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

  • Peter B. Dixon & Jayant Menon, 1995. "Measures of Intra-Industry Trade as Indicators for Factor Market Disruption," Centre of Policy Studies/IMPACT Centre Working Papers g-113, Victoria University, Centre of Policy Studies/IMPACT Centre.
  • Handle: RePEc:cop:wpaper:g-113
    as

    Download full text from publisher

    File URL: http://www.copsmodels.com/ftp/workpapr/g-113.pdf
    File Function: Initial version, 1995-04
    Download Restriction: no

    File URL: http://www.copsmodels.com/elecpapr/g-113.htm
    File Function: Local abstract: may link to additional material.
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pomfret, Richard, 1985. "Categorical Aggregation and International Trade: A Comment," Economic Journal, Royal Economic Society, vol. 95(378), pages 483-485, June.
    2. Finger, J M, 1975. "Trade Overlap and Intra-Industry Trade," Economic Inquiry, Western Economic Association International, vol. 13(4), pages 581-589, December.
    3. Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-223, July.
    4. Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 356-367, June.
    5. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
    6. Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, vol. 93(372), pages 900-908, December.
    7. Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April.
    8. Jayant Menon, 1994. "Trade Liberalisation, Closer Economic Relations and Intra-Industry Specialisation," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(2), pages 31-42.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Gãœzin Erlat & Haluk Erlat, 2003. "Measuring Intra-Industry and Marginal Intra-Industry Trade : The Case for Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 39(6), pages 5-38, November.
    3. Anonymous, 2005. "Trends in Australian Agriculture," Commission Research Papers 31903, Productivity Commission.
    4. Jayant Menon, 1996. "How Reliable are Intra-Industry Trade Measures as Indicators of Adjustment Costs?," Centre of Policy Studies/IMPACT Centre Working Papers g-119, Victoria University, Centre of Policy Studies/IMPACT Centre.
    5. Faruk Aydin & Hulya Saygili & Mesut Saygili & Gokhan Yilmaz, 2010. "Dis Ticarette Kuresel Egilimler ve Turkiye Ekonomisi," Working Papers 1001, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    6. Abdul Azhar & Robert Elliott, 2003. "On the measurement of trade-induced adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(3), pages 419-439, September.
    7. David Greenaway & Michelle Haynes & Chris Milner, 2002. "Adjustment, employment characteristics and intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 254-276, June.
    8. Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April.
    9. repec:jes:journl:y:2017:v:8:p:71-93 is not listed on IDEAS
    10. Productivity Commission, 2005. "Trends in Australian Agriculture," Research Papers 0502, Productivity Commission, Government of Australia.
    11. A K M Azhar & R J R Elliott, 2003. "Economic Integration and the Evolution of Trade: A Geometric Interpretation," The School of Economics Discussion Paper Series 0308, Economics, The University of Manchester.
    12. repec:exl:1trans:v:10:y:2015:i:2:p:15-22 is not listed on IDEAS
    13. Houston Davis & Brian Noland, 2003. "Understanding Human Capital Through Multiple Disciplines: The Educational Needs Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 61(2), pages 147-174, February.
    14. Güzin Erlat & Haluk Erlat, 2003. "Measuring Intra-Industry and Marginal Intra-Industry Trade : The Case for Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 39(6), pages 5-38, November.

    More about this item

    Keywords

    intra-industry trade; matched trade; factor market disruption;

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    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:cop:wpaper:g-113. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Horridge). General contact details of provider: http://edirc.repec.org/data/cpmonau.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.