IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Intra-industry trade

  • Kwok Tong Soo

This paper develops a many-good, many-country model of international trade which combines Ricardian comparative advantage and increasing returns to scale. It is shown how the gains from trade depend on relative country sizes, trade cost, and the technological similarity between countries. Trade consists of both inter- and intra-industry trade. The trade-weighted Grubel-Lloyd index of intra-industry trade is positively related to own country size and the number of exported sectors, and is negatively related to average partner country size, the number of imported sectors, and the trade cost. The empirical evidence supports most of these predictions, and the model fits the data better for OECD than for non-OECD countries.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/Krugman_Ricardo.pdf
Download Restriction: no

Paper provided by Lancaster University Management School, Economics Department in its series Working Papers with number 33867578.

as
in new window

Length:
Date of creation: 2013
Date of revision:
Handle: RePEc:lan:wpaper:33867578
Contact details of provider: Postal: LANCASTER LA1 4YX
Phone: +44 (1524) 594601
Fax: +44 (1524) 594244
Web page: http://www.lancaster.ac.uk/lumsEmail:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Jeffrey H. Bergstrand & Peter Egger, 2006. "Trade Costs and Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 433-458, October.
  2. Antonio Ricci, Luca, 1997. "A Ricardian Model of New Trade and Location Theory," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 47-61.
  3. Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004. "Comparative Advantage and Heterogeneous Firms," NBER Working Papers 10668, National Bureau of Economic Research, Inc.
  4. Davis, Donald R., 1995. "Intra-industry trade: A Heckscher-Ohlin-Ricardo approach," Journal of International Economics, Elsevier, vol. 39(3-4), pages 201-226, November.
  5. Kim Taegi & Keun-Yeob Oh, 2001. "Country size, income level and intra-industry trade," Applied Economics, Taylor & Francis Journals, vol. 33(3), pages 401-406.
  6. John Romalis, 2004. "Factor Proportions and the Structure of Commodity Trade," American Economic Review, American Economic Association, vol. 94(1), pages 67-97, March.
  7. Robert C. Shelburne, 2002. "Bilateral Intra-Industry Trade in a Multi-Country Helpman-Krugman Model," International Economic Journal, Taylor & Francis Journals, vol. 16(4), pages 53-73.
  8. 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.
  9. Chul Chung, 2007. "Technological Progress, Terms of Trade, and Monopolistic Competition," International Economic Journal, Taylor & Francis Journals, vol. 21(1), pages 61-70.
  10. Hummels, David & Levinsohn, James, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 799-836, August.
  11. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
  12. Costas Arkolakis & Svetlana Demidova & Peter J. Klenow & Andrés Rodríguez-Clare, 2008. "Endogenous Variety and the Gains from Trade," NBER Working Papers 13933, National Bureau of Economic Research, Inc.
  13. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
  14. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  15. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
  16. David Greenaway & Johan Torstensson,, . "Back to the Future: Taking Stock on Intra-Industry Trade," Discussion Papers 96/14, University of Nottingham, CREDIT.
  17. Toru Kikuchi & Koji Shimomura & Dao-Zhi Zeng, 2008. "On Chamberlinian-Ricardian Trade Patterns," Review of International Economics, Wiley Blackwell, vol. 16(2), pages 285-292, 05.
  18. Gordon H. Hanson, 2012. "The Rise of Middle Kingdoms: Emerging Economies in Global Trade," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 41-64, Spring.
  19. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
  20. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  21. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
  22. Andrzej Cieslik, 2005. "Intraindustry Trade and Relative Factor Endowments," Review of International Economics, Wiley Blackwell, vol. 13(5), pages 904-926, November.
  23. Jonathan Eaton & Samuel Kortum, 2012. "Putting Ricardo to Work," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 65-90, Spring.
  24. Debaere, Peter, 2005. "Monopolistic competition and trade, revisited: testing the model without testing for gravity," Journal of International Economics, Elsevier, vol. 66(1), pages 249-266, May.
  25. Chang-Tai Hsieh & Ralph Ossa, 2011. "A Global View of Productivity Growth in China," Global COE Hi-Stat Discussion Paper Series gd10-166, Institute of Economic Research, Hitotsubashi University.
  26. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
  27. Chang-Tai Hsieh & Ralph Ossa, 2011. "A Global View of Productivity Growth in China," NBER Working Papers 16778, National Bureau of Economic Research, Inc.
  28. Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-39, December.
  29. Helpman, Elhanan, 1987. "Imperfect competition and international trade: Evidence from fourteen industrial countries," Journal of the Japanese and International Economies, Elsevier, vol. 1(1), pages 62-81, March.
  30. Bergstrand, Jeffrey H, 1990. "The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-industry Trade," Economic Journal, Royal Economic Society, vol. 100(403), pages 1216-29, December.
  31. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1980. "Heckscher- Ohlin Trade Theory with a Continuum of Goods," The Quarterly Journal of Economics, MIT Press, vol. 95(2), pages 203-24, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:lan:wpaper:33867578. 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: (Maurizio Zanardi)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.