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Trade Liberalisation and Adjustment: How Important is Intra-Industry Trade?

Author

Listed:
  • Thom, R.
  • McDowell, M.

Abstract

This paper focuses on the appropriate measurement of intra-industry trade as indicator of structural adjustment costs. Vertical intra-industry trade is distinguished from horizontal trade on the basis of industrial organisation rather than quality differences. It is argued that existing dynamic versions of the Grubel-Lloyd index reflect horizontal trade only and classify vertical intra-industry trade with inter-industry trade. The paper then proposes a method to distinguish between horizontal and vertical trade and applies these techniques to emerging trade between the EU and the economies of Central and Eastern Europe.

Suggested Citation

  • Thom, R. & McDowell, M., 1998. "Trade Liberalisation and Adjustment: How Important is Intra-Industry Trade?," Papers 98/6, College Dublin, Department of Political Economy-.
    • Handle: RePEc:fth:dublec:98/6
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    Citations

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    Cited by:

    1. Bojnec, Štefan & Hartmann, Monika, 2004. "Agricultural and food trade in Central and Eastern Europe: the case of Slovenian intra-industry trade," IAMO Discussion Papers 65, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    2. Marius Brülhart & Mary J. Kelly, 1999. "Ireland’s Trading Potential with Central and Eastern European Countries - A Gravity Study," The Economic and Social Review, Economic and Social Studies, vol. 30(2), pages 159-174.
    3. Gabrisch, Hubert, 2009. "Vertical Intra-Industry Trade, Technology and Income Distribution: A Panel Data Analysis of EU Trade with Central-East European Countries," MPRA Paper 64181, University Library of Munich, Germany.
    4. Marius Brulhart & Michael Thorpe, 2000. "Intra-industry trade and adjustment in Malaysia: puzzling evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 7(11), pages 729-733.
    5. repec:zbw:iamodp:92027 is not listed on IDEAS

    More about this item

    Keywords

    TRADE LIBERALIZATION ; INDUSTRIAL STRUCTURE;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F1 - International Economics - - Trade

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