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The Insertion Of Peripheral Economies In The New Pattern Of Intra-Industrial Trade: The Case Of Galician Economy (1988-2005)

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  • Rodil Marzábal, Óscar

Abstract

Behind the development pattern of economies we can observe a increasing intra-industrial trade, this is: bilateral trade within each sector. Among the explanatory factors of intra-industrial trade we can find the economies of scale, product differentiation and diversity in the preferences of the consumers. These factors are reinforced by the strategies of the multinational companies (intra-firm trade as a part of intra-industrial trade) and the border trade. Some recent works (Rodil, 1998, 1999) showed a slight progress of this kind of trade in the external trade of galician economy. Concerning this, we confirm in this work this tendency until recent years. This main result comes with some specific characteristics at sectoral level. In addition, we also introduce a analysis of the foreign direct investment that can help us to explain a part of these tendencies.

Suggested Citation

  • Rodil Marzábal, Óscar, 2008. "The Insertion Of Peripheral Economies In The New Pattern Of Intra-Industrial Trade: The Case Of Galician Economy (1988-2005)," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 17(1).
    • Handle: RePEc:sdo:regaec:v:17:y:2008:i:1_9
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