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Country size, income level and intra-industry trade

Author

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  • Kim Taegi
  • Keun-Yeob Oh

Abstract

This study investigates three testable hypotheses of intra-industry trade., It begins by developing a theoretical, two country model., The model explicitly includes two goods: differentiated products and homogeneous goods., Then three empirical hypotheses are derived as follows., The share of intra-industry trade will be large: (a) if the two economies are of similar size, (b) if the capital-labour endowment ratio of both countries is similar, and (c) if the total size of the two economies is large., From the cross-sectional analysis using 1970-1994 data, results are obtained that support the model., Furthermore, the results are confirmed using panel analysis on the pooled data.,

Suggested Citation

  • Kim Taegi & Keun-Yeob Oh, 2001. "Country size, income level and intra-industry trade," Applied Economics, Taylor & Francis Journals, vol. 33(3), pages 401-406.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:401-406
    DOI: 10.,1080/00036840122211
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    Cited by:

    1. Fullerton, Thomas M., Jr. & Sawyer, W. Charles & Sprinkle, Richard L., 2010. "Intra-industry trade in Latin America and the Caribbean," MPRA Paper 34854, University Library of Munich, Germany, revised 2011.
    2. Justyna Lapinska, 2016. "Determinant Factors Of Intra-Industry Trade: The Case Of Poland And Its European Union Trading Partners," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 251-264, June.
    3. Sakshi Aggarwal & Debashis Chakraborty, 2022. "Which Factors Influence India’s Bilateral Intra-Industry Trade? Cross-Country Empirical Estimates," Working Papers 2260, Indian Institute of Foreign Trade.
    4. Kwok Tong Soo, 2013. "Intra-industry trade," Working Papers 33867578, Lancaster University Management School, Economics Department.

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