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The Determinants of Intra-industry Specialization in United States Trade

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  • Balassa, Bela

Abstract

This paper sets out to explain the determinants of intraindustry specia lization in the United States by reference to industry as wellas country charac teristics. It is shown that the extent of intraindustry trade is positively cor-related with product differentiation, marketing costs, the variability of profit rates, and offshore procurement; and it is negatively correlated with economies of scale, industrial concentration, foreign direct investment, and transportati on costs. It is further shown that intraindustry specialization in U.S. trade wi th individual countriesis positively correlated with the extent of trade orient ation in these countries; and it is negatively correlated with inequalities inp er capita incomes and total GNP, and with distance between the United States and the individual countries. Copyright 1986 by Royal Economic Society.

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  • Balassa, Bela, 1986. "The Determinants of Intra-industry Specialization in United States Trade," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 220-233, July.
    • Handle: RePEc:oup:oxecpp:v:38:y:1986:i:2:p:220-33
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