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The Role of Intra-industry Trade in the World Economy


  • W. Charles Sawyer

    () (Department of Economics, Texas Christian University)

  • Richard Sprinkle

    () (Department of Economics and Finance, University of Texas at El Paso)


The concept that the world economy is becoming more integrated is now common place. Terms such as “globalization” or “internationalization” have been integrated into our everyday vocabulary. Over the last several decades, globalization has become a twoway street as goods flow more freely over national borders than any time in recent memory. International travel has gone from being a luxury for the privileged few to being common place for even the middle class in OECD countries. Trillions of dollars flow from one financial market to another every day and foreign direct investment (FDI) has become a large part of total investment in the world economy. Even labor moves among countries much more freely than was once the case.

Suggested Citation

  • W. Charles Sawyer & Richard Sprinkle, 2012. "The Role of Intra-industry Trade in the World Economy," Working Papers 201203, Texas Christian University, Department of Economics.
  • Handle: RePEc:tcu:wpaper:201203

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    References listed on IDEAS

    1. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    2. Mahmudul Anam & Shin--Hwan Chiang, 2003. "Intraindustry Trade in Identical Products: a Portfolio Approach," Review of International Economics, Wiley Blackwell, vol. 11(1), pages 90-100, February.
    3. World Bank, 2004. "World Development Indicators 2004," World Bank Publications, The World Bank, number 13890.
    4. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    5. Greenhut, Melvin L & Ohta, Hiroshi & Sailors, Joel, 1985. "Reverse Dumping: A Form of Spatial Price Discrimination," Journal of Industrial Economics, Wiley Blackwell, vol. 34(2), pages 167-181, December.
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    Cited by:

    1. Peter, Manuel, 2015. "Konvergenz der europäischen Aktienmärkte: Eine Analyse der Entwicklungen und Herausforderungen für Investoren," Arbeitspapiere 150, University of Münster, Institute for Cooperatives.

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