Trade Protectionism and Intra-industry Trade: A USA - EU Comparison
The aim of this work is to find patterns for products included in the customs tariffs of the USA and the EU (composed of over 5000 products disaggregated at the 6 digit-level) which share similarities, defined by a set of international trade variables, namely the index of revealed comparative advantages (RCA), the Grubel-Lloyd index, and other indicators of international trade. There is a recent strand in the literature advancing a theory that links the degree of intra-industry trade with the level of protectionism. In order to test this theory we use cluster analysis as a method of data analysis and the Grubel-Lloyd index as a classification variable between groups. For each of the analyzed regions we obtain four different groups. Thereafter each of these four clusters are further characterized with the help of the other international trade indicators and the tariffs. Finally, we establish a comparison between the two regions by examining possible differences and similarities. The results show a significant difference in the tariffs applied between the USA and the EU, with the USA presenting a lower level of protectionism. Additionally, the results for the USA show a positive relationship between the degree of intra-industry trade and a lower level of protectionism, while for the EU the results are not conclusive.
|Date of creation:||31 Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102, January.
- Antoine Bouet & Yvan Decreux & Lionel Fontagné & Sébastien Jean & David Laborde, 2008.
"Assessing Applied Protection across the World,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005.
"Trade in the Triad: How Easy is the Access to Large Markets?,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(4), pages 1401-1430, November.
- Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2005. "Trade in the Triad: how easy is the access to large markets?," Sciences Po publications info:hdl:2441/10189, Sciences Po.
- Thierry Mayer & Luc Fontagné & Soledad Zignao, 2005. "Trade in the Triad : how easy is the acess to large markets ?," Post-Print halshs-00754047, HAL.
- Lionel Fontagné & Thierry Mayer & Soledad Zignago, 2004. "Trade in the Triad: How Easy is the Access to Large Markets?," Working Papers 2004-04, CEPII research center.
- Fontagne, Lionel & Mayer, Thierry & Zignago, Soledad, 2004. "Trade in the Triad: How Easy is the Access to Large Markets?," CEPR Discussion Papers 4442, C.E.P.R. Discussion Papers.
- Jan Jørgensen & Philipp Schröder, 2005. "Welfare-ranking ad valorem and specific tariffs under monopolistic competition," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 228-241, February.
- Greenaway, David & Milner, Chris, 1988. "Intra industry trade and the shifting of protection across sectors," European Economic Review, Elsevier, vol. 32(4), pages 927-945, April.
- Greenaway, David & Hine, Robert C., 1990.
"Intra Industry Specialisation, Trade Expansion and Adjustment in the European Economic Space,"
Working Paper Series
281, Research Institute of Industrial Economics.
- David Greenaway & Robert C. Hine, 1991. "Intra-Industry Specialization, Trade Expansion and Adjustment in the European Economic Space," Journal of Common Market Studies, Wiley Blackwell, vol. 29(6), pages 603-622, December.
- Marius Brülhart & Robert J. R. Elliott,, .
"Adjustment to the European Single Market: Inferences from Intra-Industry Trade Patterns,"
96/15, University of Nottingham, CREDIT.
- Marius Brülhart & Robert J.R. Elliott, 1998. "Adjustment to the European single market: inferences from intra-industry trade patterns," Journal of Economic Studies, Emerald Group Publishing, vol. 25(3), pages 225-247, September.
- Gary Clyde Hufbauer & Kimberly Ann Elliott, 1994. "Measuring the Costs of Protection in the United States," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 77, January.
- Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012.
"MAcMap-HS6 2007, an Exhaustive and Consistent Measure of Applied Protection in 2007,"
CEPII research center, issue 130, pages 99-122.
- Houssein Guimbard & Sébastien Jean & Mondher Mimouni & Xavier Pichot, 2012. "MAcMap-HS6 2007, an exhaustive and consistent measure of applied protection in 2007," Working Papers 2012-10, CEPII research center.
- Carolyn L. Evans, 2007. "National Border Effects: Location, Not Nationality, Matters," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 347-369, 05.
- Neil Foster-McGregor & Robert Stehrer, 2010.
"Preferential Trade Agreements and the Structure of International Trade,"
wiiw Working Papers
61, The Vienna Institute for International Economic Studies, wiiw.
- Neil Foster & Robert Stehrer, 2011. "Preferential trade agreements and the structure of international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 385-409, September.
- Neil Foster & Robert Stehrer, 2011. "Preferential trade agreements and the structure of international trade," Post-Print hal-00678454, HAL.
- Jayant Menon & Peter B. Dixon,, . "Regional Trading Agreements and Intra-Industry Trade," Discussion Papers 95/14, University of Nottingham, CREDIT.
- Salvatici, Luca & Cipollina, Maria, 2006.
"Measuring Protection: Mission Impossible?,"
18876, TRADEAG - Agricultural Trade Agreements.
- Bohara, Alok K & Kaempfer, William H, 1991. "A Test of Tariff Endogeneity in the United States," American Economic Review, American Economic Association, vol. 81(4), pages 952-60, September.
- Ratnayake, Ravindra & Jayasuriya, Sisira, 1991. "Intra-industry trade and protection : Which way does the causation go?," Economics Letters, Elsevier, vol. 36(1), pages 71-76, May.
- repec:cii:cepiei:2012-q2-130-5 is not listed on IDEAS
- Michael Peneder, 2003. "Industry Classifications: Aim, Scope and Techniques," Journal of Industry, Competition and Trade, Springer, vol. 3(1), pages 109-129, March.
- Klimis Vogiatzoglou, 2006. "Patterns and determinants of intra-industry trade within NAFTA," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 8(3/4), pages 262-279.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:49379. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.