The Growth of Intra-Industry Trade: New Trade Patterns in a Changing Global Economy

by Leonie L. Stone

Overview

First Published in 1997. The explosive growth of world trade in the last three decades is unparalleled in history, both due to the rapid increase in volume and to the change in the composition of trade. Historically, trade between nations has consisted largely of exchanges of products that were very different from each other, neither closely substitutable in consumption nor production processes. However, in this latest period of trade expansion, the majority of the increase in world trade has been in manufactured goods, many of which are highly substitutable differentiated products. This has led to growth in intra-industry trade, the cross-shipment of similar products. This study links increased shares of intra-industry trade with growth in newly-industrializing countries. To examine these questions, this study first gives a review of existing literature, both theoretical and empirical. Five hypotheses on intra-industry trade are then discussed. A model is then presented and estimated, using data on bilateral trade between the United States and its five major trading partners, Canada, Japan, France, Germany, and the United Kingdom.

Product Details

ISBN-13:	9781000526363
Publisher:	Taylor & Francis
Publication date:	10/28/2021
Sold by:	Barnes & Noble
Format:	eBook
Pages:	104
File size:	4 MB

About the Author

Leonie L. Stone

Table of Contents

I Introduction II Review of Theoretical Literature 2.1 Structurally Competitive Markets 2.2 A Gravity Equation Model 2.3 Comments on Competitive Models 2.4 Imperfectly Competitive Markets in Empirical Studies of Intra-Industry Trade 3.1 Industry Studies 3.2 Country Studies IV Hypotheses on Intra-Industry Trade V Methodology and Data Sources 5.1 The Measurement of Intra-Industry Trade 5.2 Specification of the Model VI Empirical Evidence 6.1 The Descriptive Statistics 6.2 The Regression Results VII Intra-Industry Trade and Economic Growth VIII Conclusions and Future Directions

Editorial Reviews

Analyzes the trade between countries in products that are very similar to each other, rather than the manufactures-for-food or textiles-for-timber types of major differences that characterized earlier periods of world trade. Explains how the countries that engage in such trade tend to be similar themselves and have high per-capita income, so that people are willing to pay more for an imported product just a little different than a domestic one they could buy for less. Developed from a doctoral dissertation for Ohio State University; no date noted. Annotation c. by Book News, Inc., Portland, Or.

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