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Trade overlap and trade pattern indices of intra-industry trade: Theoretical distinctions versus empirical similarities

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  • Silber, Jacques
  • Broll, Udo F.

Abstract

In a recent survey of intra-industry trade indices Kol and Mennes (1986) suggested to make a basic distinction between the study of matching trade flows and that of the similiarity oftrade patterns. The present paper shows that in both cases measures of intra-industry trade may be expressed either as distances or as equality indices, and derives the corresponding families of intra-industry indices. An empirical section indicates however that despite these theoretical distinctions, most of the intra-industry trade indices are highly correlated.

Suggested Citation

  • Silber, Jacques & Broll, Udo F., 1990. "Trade overlap and trade pattern indices of intra-industry trade: Theoretical distinctions versus empirical similarities," Discussion Papers, Series II 107, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:107
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    References listed on IDEAS

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    1. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(2), pages 275-296, June.
    2. Pomfret, Richard, 1981. "The Impact of EEC Enlargement on Non-member Mediterranean Countries' Exports to the EEC," Economic Journal, Royal Economic Society, vol. 91(363), pages 726-729, September.
    3. Kol, Jacob & Mennes, Loet B. M., 1986. "Intra-industry specialization: Some observations on concepts and measurement," Journal of International Economics, Elsevier, vol. 21(1-2), pages 173-181, August.
    4. Balassa, Bela, 1974. "Trade Creation and Trade Diversion in the European Common Market: An Appraisal of the Evidence," The Manchester School of Economic & Social Studies, University of Manchester, vol. 42(2), pages 93-135, June.
    5. Finger, J M & Kreinin, M E, 1979. "A Measure of 'Export Similarity' and Its Possible Uses," Economic Journal, Royal Economic Society, vol. 89(356), pages 905-912, December.
    6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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