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Bilateral Intra-Industry Trade in a Multi-Country Helpman-Krugman Model

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  • Robert C. Shelburne

Abstract

The factors that explain the level of intra-industry trade and its share of total trade in a multi-country version of the Helpman-Krugman model are derived. The role of similarity of endowment ratios and similarity of economic sizes differ in the multi-country version from the two country version of this model. It is also demonstrated that the volume of total trade, the volume of intra-industry trade and the volume of inter-industry trade can each be described by a modified gravity equation. A new diagrammatical device is introduced that illustrates the relationship between trade volume and similarity in country size. [F12]

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  • Robert C. Shelburne, 2002. "Bilateral Intra-Industry Trade in a Multi-Country Helpman-Krugman Model," International Economic Journal, Taylor & Francis Journals, vol. 16(4), pages 53-73.
    • Handle: RePEc:taf:intecj:v:16:y:2002:i:4:p:53-73
    DOI: 10.1080/10168730200000028
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    References listed on IDEAS

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    2. Kandogan, Yener, 2009. "A Gravity Model for Components of Imports," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 5(01-2), pages 1-17, April.
    3. Peridy Nicolas J & Abedini Javad, 2008. "The Growing Influence of Emerging Countries in the World Car Industry: An Estimation of Export Potentials in a World Trade Model," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-28, September.
    4. Juliette Milgram‐Baleix & Ana I. Moro‐Egido, 2010. "The Asymmetric Effect of Endowments on Vertical Intra‐industrial Trade," The World Economy, Wiley Blackwell, vol. 33(5), pages 746-777, May.
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    7. 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.
    8. Kwok Tong Soo, 2013. "Intra-industry trade," Working Papers 33867578, Lancaster University Management School, Economics Department.

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