IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v73y1997i222p233-247.html
   My bibliography  Save this article

Measures of Intra‐Industry Trade as Indicators of Factor Market Disruption

Author

Listed:
  • PETER B. DIXON
  • JAYANT MENON

Abstract

Concepts of intra‐industry trade (IIT) are often used to indicate the extent to which trade growth is accommodated without factor market disruption. The most common indicators are movements in Grubel‐Lloyd indexes. However, these are sometimes misleading. We develop two other indicators. The first involves changes in IIT. While this provides a measure of the contribution of ITT growth to trade growth, it can over‐estimate the contribution of non‐disruptive trade growth. This problem is overcome by our second indicator, the contribution of dynamic intra‐industry trade or matched changes in trade. All three indicators are illustrated with Australian manufacturing data.

Suggested Citation

  • Peter B. Dixon & Jayant Menon, 1997. "Measures of Intra‐Industry Trade as Indicators of Factor Market Disruption," The Economic Record, The Economic Society of Australia, vol. 73(222), pages 233-247, September.
    • Handle: RePEc:bla:ecorec:v:73:y:1997:i:222:p:233-247
    DOI: 10.1111/j.1475-4932.1997.tb00996.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1997.tb00996.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1997.tb00996.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jayant Menon & Peter B. Dixon, 1994. "How Important is Intra-Industry Trade in Australia's Rapid Trade Growth?," Centre of Policy Studies/IMPACT Centre Working Papers g-110, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Pomfret, Richard, 1985. "Categorical Aggregation and International Trade: A Comment," Economic Journal, Royal Economic Society, vol. 95(378), pages 483-485, June.
    3. Caves, Richard E, 1981. "Intra-Industry Trade and Market Structure in the Industrial Countries," Oxford Economic Papers, Oxford University Press, vol. 33(2), pages 203-223, July.
    4. Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 356-367, June.
    5. Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, vol. 93(372), pages 900-908, December.
    6. Finger, J M, 1975. "Trade Overlap and Intra-Industry Trade," Economic Inquiry, Western Economic Association International, vol. 13(4), pages 581-589, December.
    7. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
    8. Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April.
    9. Jayant Menon, 1994. "Trade Liberalisation, Closer Economic Relations and Intra‐Industry Specialisation," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(2), pages 31-42, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faruk Aydin & Hulya Saygili & Mesut Saygili & Gokhan Yilmaz, 2010. "Dis Ticarette Kuresel Egilimler ve Turkiye Ekonomisi," Working Papers 1001, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    2. Abdul K. M. Azhar & Robert J. R. Elliott, 2008. "On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 225-247, July.
    3. Abdul Azhar & Robert Elliott, 2003. "On the measurement of trade-induced adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(3), pages 419-439, September.
    4. David Greenaway & Michelle Haynes & Chris Milner, 2002. "Adjustment, employment characteristics and intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 254-276, June.
    5. Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April.
    6. Unknown, 2005. "Trends in Australian Agriculture," Commission Research Papers 31903, Productivity Commission.
    7. Productivity Commission, 2005. "Trends in Australian Agriculture," Research Papers 0502, Productivity Commission, Government of Australia.
    8. A K M Azhar & R J R Elliott, 2003. "Economic Integration and the Evolution of Trade: A Geometric Interpretation," Economics Discussion Paper Series 0308, Economics, The University of Manchester.
    9. Martina BLAŠKOVà & Filip ŠKULTÉTY, 2015. "U.S. intra-industry trade in air transport services: measurement and results," Transport Problems, Silesian University of Technology, Faculty of Transport, vol. 10(2), pages 15-22, June.
    10. Houston Davis & Brian Noland, 2003. "Understanding Human Capital Through Multiple Disciplines: The Educational Needs Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 61(2), pages 147-174, February.
    11. Jayant Menon, 1996. "How Reliable are Intra-Industry Trade Measures as Indicators of Adjustment Costs?," Centre of Policy Studies/IMPACT Centre Working Papers g-119, Victoria University, Centre of Policy Studies/IMPACT Centre.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jayant Menon, 1994. "Trade Liberalization and Intra-Industry Specialization: The Australian Experience," Centre of Policy Studies/IMPACT Centre Working Papers g-107, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Jayant Menon & Peter B. Dixon, 1995. "Regional Trading Arrangements and Intra-Industry Trade: The Case of ANZCERTA," Centre of Policy Studies/IMPACT Centre Working Papers g-114, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Jayant Menon & Peter Dixon, 1996. "How important is intra-industry trade in trade growth?," Open Economies Review, Springer, vol. 7(2), pages 161-175, April.
    4. Jayant Menon & Peter B. Dixon, 1994. "How Important is Intra-Industry Trade in Australia's Rapid Trade Growth?," Centre of Policy Studies/IMPACT Centre Working Papers g-110, Victoria University, Centre of Policy Studies/IMPACT Centre.
    5. Kishor Sharma, 1999. "Pattern and Determinants of Intra-Industry Trade in Australian Manufacturing," Working Papers 813, Economic Growth Center, Yale University.
    6. Menon, Jayant, 1997. "Japan's Intraindustry Trade Dynamics," Journal of the Japanese and International Economies, Elsevier, vol. 11(2), pages 123-142, June.
    7. Mónica Rivera, 2014. "Trade patterns in the process of European integration: Evidence for the intraindustrial exchanges of a Mediterranean peripheral region," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(1), pages 227-249, January.
    8. Luka, Oksana & Levkovych, Inna, 2004. "Intra-industry trade in agricultural and food products: the case of Ukraine," IAMO Discussion Papers 78, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    9. M. A. B. Siddique & Srikanta Chatterjee, 2002. "The CER in Action: A Closer Look at Australia-NZ Trade Flows Since 1983," Economics Discussion / Working Papers 02-18, The University of Western Australia, Department of Economics.
    10. repec:kap:iaecre:v:14:y:2008:i:4:p:355-368 is not listed on IDEAS
    11. Jayant Menon, 1996. "How Reliable are Intra-Industry Trade Measures as Indicators of Adjustment Costs?," Centre of Policy Studies/IMPACT Centre Working Papers g-119, Victoria University, Centre of Policy Studies/IMPACT Centre.
    12. Valerija Botrić, 2013. "Determinants of Intra-industry Trade between Western Balkans and EU-15: Evidence from Bilateral Data," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(2), pages 7-23, September.
    13. G. Nesdale, 1996. "Tariffs and Intra-Industry Trade," Economics Discussion / Working Papers 96-11, The University of Western Australia, Department of Economics.
    14. Dimitri Mardas & Chistos Nikas, 2008. "European Integration, Intra-industry Trade in Vertically Differentiated Products and the Balkan Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 355-368, November.
    15. Abdul Azhar & Robert Elliott, 2003. "On the measurement of trade-induced adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 139(3), pages 419-439, September.
    16. Fullerton, Thomas M., Jr. & Sawyer, W. Charles & Sprinkle, Richard L., 2010. "Intra-industry trade in Latin America and the Caribbean," MPRA Paper 34854, University Library of Munich, Germany, revised 2011.
    17. Gianpaolo Rossini & Michele Burattoni, 1996. "Trade and convergence between rich and developing countries: Some empirical evidence on macrodeterminants of specialization," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(1), pages 75-96, March.
    18. Peter K. Schott, 2001. "Do Rich and Poor Countries Specialize in a Different Mix of Goods? Evidence from Product-Level US Trade Data," NBER Working Papers 8492, National Bureau of Economic Research, Inc.
    19. José Blanes & Carmela Martín, 2000. "The nature and causes of intra-industry trade: Back to the comparative advantage explanation? The case of Spain," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(3), pages 423-441, September.
    20. Clive Hamilton & Paul Kniest, 1991. "Trade liberalisation, structural adjustment and intra-industry trade: A note," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(2), pages 356-367, June.
    21. Davis, Donald R., 1995. "Intra-industry trade: A Heckscher-Ohlin-Ricardo approach," Journal of International Economics, Elsevier, vol. 39(3-4), pages 201-226, November.

    More about this item

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:73:y:1997:i:222:p:233-247. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.