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horizontal intra industry trade

21-42 (Junio 2009) 21 Abstract The main objectives of this paper are to (a) explain the extent of vertical and horizontal intra-industry trade in the United State’s foreign trade with the Tests of the Empirical Classification of Horizontal and Vertical IntraIndustry Trade. Measuring horizontal intra-industry trade and vertical intra-industry trade (VIIT) requires that traded products be classified as horizontally differentiated and vertically differentiated, and Greenaway et al. — Using longitudinal data this paper shows the separation of international trade in (a) inter-industry trade, (b) horizontal intra-industry trade, and (c) vertical intra-industry trade used in the empirical trade literature to be non-stable at the individual product level. To investigate this development, the paper decomposes machinery trade into one-way trade, vertical intra-industry trade (vertical IIT), and horizontal intra-industry trade (horizontal IIT), using finely disaggregated international trade data. To confirm the robustness of the results we use alternative measures for a 1533-1552. The Economic Journal, 105, 1505-1518. 24, nº 1, pp. Definition: Different types of trade are captured in measurements of intra-industry trade: a) Trade in similar products (“horizontal trade”) with differentiated varieties (e.g. Greenaway, D., Hine, R. and Milner, C. (1995) Vertical and Horizontal Intra-Industry Trade A Cross Industry Analysis for the United Kingdom. We identify distinct factors for each type and the comparative advantage explanation for the vertical case. Abstract. 14, pp. This increase in cross‐border production‐sharing activities in the auto industry led to intra‐industry trade (IIT) in auto‐parts. In this study, the extent of IIT in the US auto‐parts industry is examined by decomposing trade into inter‐industry trade, vertical IIT and horizontal IIT. We used the five-digit SITC, Rev. Aturupane C, Djankov S. and Hoekman B., (1999), "Horizontal and vertical intra-industry trade between Eastern Europe and the European Union", Weltwirtschaftliches Archiv, Vol. These works on iit, which estimated regression models for developed coun-tries, have generally found more support for the importance of country Horizontal Intra-Industry Trade and the Growth of International Trade by Nicolas Schmitt Simon Fraser University and Zhihao Yu University of Nottingham December 2000 Article prepared for the forthcoming volume ‘Frontiers of Research on Intra-industry Trade’, edited by … 3 trade data for the Turkish manufacturing sector, for 1987–2001. Applied Economics: Vol. (2020). At the two opposite of the spectrum, we find France and Germany having the highest share of IIT in their bilateral trade … 52, No. vertical and horizontal intra-industry trade…revista de análisis económico, vol. (1994) do this by using the relative unit values of exports and imports. Patterns and determinants of the horizontal and vertical intra-industry trade of regions: panel analysis for Spain & Poland. difficulties connected with disentangling vertical and horizontal intra-industry trade.¹⁰Therefore, the majority of studies investigated intra-industry trade exchange between highly developed economies. We rely on vertical and horizontal differentiation models to study the cross-industry and cross-country determinants of Portuguese intra-industry trade in 1997. Both horizontal intra-industry trade (differentiated products with similar attributes) and vertical intra-industry trade (products differentiated by quality) have increased since the eighties although vertical intra-industry trade has always been bigger than horizontal intra-industry trade. East Asia experienced an unprecedented change in its international trade patterns in the last 10–15 years. cars of … 135 (1). Disentangling Horizontal and Vertical Intra-Industry Trade 5 We show that the increase in IIT at the world level is due to two-way trade of vertically differentiated products.

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