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An Account of Global Intra-industry Trade, 1962-2006

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  • Marius Brülhart

Abstract

This paper provides a comprehensive description of intra-industry trade patterns and trends, using data on more than 39 million bilateral trade flows. In 2006, 27 percent of global trade was intra-industry if measured at the finest (5-digit) level of statistical aggregation, and 44 percent if measured at a coarser (3-digit) level of statistical aggregation. The observed steady growth in global intra-industry trade since the early 1960s suggests a process of world-wide structural convergence: economies are becoming more similar over time in terms of their sectoral compositions. In particular since the 1990s, this trend appears to be driven to a significant extent by the international fragmentation of vertical production chains. Intra-industry trade is a high-income and middle-income country phenomenon: African trade remains overwhelmingly of the inter-industry type. Moreover, the observed increase in intra-industry trade was not accompanied by a comparable increase in marginal intra-industry trade, suggesting that trade-induced adjustment pressures remain potentially important.

Suggested Citation

  • Marius Brülhart, "undated". "An Account of Global Intra-industry Trade, 1962-2006," Discussion Papers 08/08, University of Nottingham, GEP.
  • Handle: RePEc:not:notgep:08/08
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Comments on Intra-Industry Trade
      by Fabien Candau in Blog@ge sur l'économie internationale on 2016-10-13 13:28:00

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    Cited by:

    1. Ferto, Imre & Podruzsik, Szilard & Balogh, Jeremiás, 2014. "Intra - industry trade in the wine industry in the enlarged European Union," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 169092, European Association of Agricultural Economists.
    2. de Melo, Jaime & Tsikata, Yvonne, 2014. "Regional integration in Africa: Challenges and prospects," WIDER Working Paper Series 037, World Institute for Development Economic Research (UNU-WIDER).
    3. Tadashi Ito & Toshihiro Okubo, 2016. "Product Quality And Intra-Industry Trade," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-22, September.
    4. Fertő, Imre, 2013. "Intra-industry trade for agri-food products in the enlarged European Union," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158846, Agricultural Economics Society.
    5. Arvind Subramanian & Martin Kessler, 2013. "The Hyperglobalization of Trade and Its Future," Working Paper Series WP13-6, Peterson Institute for International Economics.
    6. Ferto, Imre & Jambor, Attila, 2013. "Vertical Intra-Industry Trade and the EU Accession: The Case of Hungarian Agri-Food Sector," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158847, Agricultural Economics Society.
    7. Jámbor, Attila, 2014. "A horizontális és vertikális ágazaton belüli agrárkereskedelem meghatározó tényezői az EU új tagországaiban
      [Determinants of horizontal and vertical intra-industry agri-food trade in the new EU mem
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 544-565.
    8. Bojnec, Stefan & Ferto, Imre, 2016. "Patterns and Drivers of the Agri-Food Intra-Industry Trade of European Union Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(2).
    9. Aleksandra Parteka, 2012. "Trade Diversity and Stages of Development–Evidence on EU Countries," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 30.

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