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Intraindustry Trade and Relative Factor Endowments

Author

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  • Andrzej Cieślik

Abstract

This article investigates the relationship between relative factor endowments and intraindustry trade shares in bilateral trade flows. While Helpman and Krugman's theoretical framework predicts a negative relationship, empirical studies often report contrary results. We, however, argue that previous empirical studies fail to provide an exact link between the theory and the data. New empirical evidence based on the estimating equation derived directly from the theoretical framework demonstrates that the theory finds support in the data once the sums of capital–labor ratios are controlled for.

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  • Andrzej Cieślik, 2005. "Intraindustry Trade and Relative Factor Endowments," Review of International Economics, Wiley Blackwell, vol. 13(5), pages 904-926, November.
    • Handle: RePEc:bla:reviec:v:13:y:2005:i:5:p:904-926
    DOI: 10.1111/j.1467-9396.2005.00544.x
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    Cited by:

    1. Imre Fertő & Szilárd Podruzsik & Jeremiás Balogh, 2016. "Intra-industry trade in the wine sector in the enlarged European Union," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(3), pages 159-172, November.
    2. Kwok Tong Soo, 2016. "Intra-industry trade: A Krugman–Ricardo Model and Data," Economica, London School of Economics and Political Science, vol. 83(330), pages 338-355, April.
    3. Bojnec, Stefan & Ferto, Imre, 2016. "Patterns and Drivers of the Agri-Food Intra-Industry Trade of European Union Countries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-22, May.
    4. Kwok Tong Soo, 2013. "Intra-industry trade," Working Papers 33867578, Lancaster University Management School, Economics Department.
    5. Ferto, Imre & Podruzsik, Szilard & Balogh, Jeremiás, 2014. "Intra - industry trade in the wine industry in the enlarged European Union," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 169092, European Association of Agricultural Economists.
    6. Michael Peneder & Christian Rammer, 2018. "Measuring Competitiveness," WIFO Studies, WIFO, number 60838, March.
    7. Peneder, Michael & Rammer, Christian (ed.), 2018. "Measuring Competitiveness," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 181906.
    8. Fertő, Imre, 2013. "Intra-industry trade for agri-food products in the enlarged European Union," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158846, Agricultural Economics Society.
    9. Rebecca Neumann & Saleh S. Tabrizy, 2021. "Exchange Rates and Trade Balances: Effects of Intra-Industry Trade and Vertical Specialization," Open Economies Review, Springer, vol. 32(3), pages 613-647, July.

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