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Developing Countries in Light of Intra-Trade


  • Broll, Udo
  • Gilroy, Bernard Michael


This paper examines one possible explanation for intra-trade flows derived in light of an international environment characterized by product differentiation, economies of scale, and monopolistic competition. The analysis may be structured within a more general formulated Heckscher-Ohlin framework, in which intra-trade flows may be explained through product differentiation while conventional explanations apply to inter-industry trade (see e.g. Helpman (1981), (1984), Kierzkowski (1984)). The model analyses the relationship between the total volume of trade, the share of intra-trade on cross-country differences in relative factor endowments and relative country size in a simple integrated two country world.

Suggested Citation

  • Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:18046

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    References listed on IDEAS

    1. David Greenaway, 1983. "Intra-industry and inter-industry trade in Switzerland," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 119(1), pages 109-121, March.
    2. Broll, Udo & Gilroy, Bernard Michael, 1985. "International Division of Labour and Intra-Trade," MPRA Paper 18042, University Library of Munich, Germany.
    3. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
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    Cited by:

    1. Gilroy, Bernard Michael, 1988. "Die Schweiz im Spannungsfeld der Welthandels- und Strukturanpassungsprobleme
      [Switzerland in the area of conflict of world trade and structural adjustment problems]
      ," MPRA Paper 21080, University Library of Munich, Germany.
    2. Broll, Udo & Gilroy, Bernard Michael, 1986. "Indian Industrialisation, Multinational Enterprises and Gains from Trade," MPRA Paper 18057, University Library of Munich, Germany.
    3. Gilroy, Bernard Michael & Broll, Udo, 1988. "International Cooperation and Intra-Industrial Transactions," MPRA Paper 18705, University Library of Munich, Germany.
    4. Gilroy, Bernard Michael, 1987. "The role of intra-firm trade," MPRA Paper 18039, University Library of Munich, Germany.

    More about this item


    Developing countries; trade; intra-trade flows; cross-country analysis;

    JEL classification:

    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • F1 - International Economics - - Trade


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