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Measures of Intra-industry Trade as Indicators of Factor Market Disruption

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  • Dixon, Peter B
  • Menon, Jayant

Abstract

Concepts of intraindustry 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. The authors develop two other indicators. The first involves changes in IIT. While this provides a measure of the contribution of IIT growth to trade growth, it can overestimate the contribution of nondisruptive trade growth. This problem is overcome by their second indicator, the contribution of dynamic intraindustry trade or matched changes in trade. All three indicators are illustrated with Australian manufacturing data. Copyright 1997 by The Economic Society of Australia.

Suggested Citation

  • Dixon, Peter B & Menon, Jayant, 1997. "Measures of Intra-industry Trade as Indicators of Factor Market Disruption," The Economic Record, The Economic Society of Australia, vol. 73(222), pages 233-237, September.
    • Handle: RePEc:bla:ecorec:v:73:y:1997:i:222:p:233-37
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    Cited by:

    1. 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.
    2. Edo Rajh & Goran Buturac, 2005. "Trade Patterns In Croatia: K-Means Cluster Analysis," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 14(2), pages 221-232, december.
    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. Patryk Emanuel TOPOROWSKI, 2017. "Did the economic crisis change V4 trade patterns? The case of intra-industry trade," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 71-93, December.
    6. 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.
    7. 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.

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