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Economic Integration, Inter- and Intra-Industry Trade: The Case of Sweden and the EC

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  • Lundberg, Lars

Abstract

When trade is heavily restricted, a small country may show a "false" comparative disadvantage in differentiated products at an early stage in the life cycle, because firms are confined to a small domestic market. An analysis of changes in the pattern of trade between Sweden and the EC after the establishment of free trade in manufactures shows that the Swedish net export position improved in industries with high rates of growth in demand and turnover of technology. The results provide some support for the hypothesis that in initial Swedish disadvantage in product cycle goods, caused by the limitations of the domestic market, was reduced by the free trade agreement. Copyright 1992 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Lundberg, Lars, 1992. "Economic Integration, Inter- and Intra-Industry Trade: The Case of Sweden and the EC," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(3), pages 393-408.
    • Handle: RePEc:bla:scandj:v:94:y:1992:i:3:p:393-408
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    Cited by:

    1. Sylvie MONTOUT & Jean-Louis MUCCHIELLI & Soledad ZIGNAGO, 2002. "Regionalization And Intra-Industry Trade. An Analysis Of Automobile Industry Trade In Nafta," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 16, pages 137-159.
    2. Jan Fagerberg, 1993. "Technology, Trade Structure and Economic Integration - An examination of Intra-Nordic, Nordic-EC and Intra-EC trade 1961-1987," Working Papers Archives 1993489, Centre for Technology, Innovation and Culture, University of Oslo.
    3. G. Nesdale, 1996. "Tariffs and Intra-Industry Trade," Economics Discussion / Working Papers 96-11, The University of Western Australia, Department of Economics.
    4. Guglielmo Maria Caporale & Christophe Rault & Robert Sova & Anamaria Sova, 2009. "Trade Specialisation and Economic Convergence: Evidence from Two Eastern European Countries," Discussion Papers of DIW Berlin 875, DIW Berlin, German Institute for Economic Research.
    5. Johan Torstensson, 1998. "Country size and comparative advantage: An empirical study," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 590-611, December.

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