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Intra-Industry Trade in Homogeneous Products

In: Frontiers of Research in Intra-Industry Trade

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  • Daniel M. Bernhofen

Abstract

There seems to be a general consensus among trade economists that the phenomenon of intra-industry trade is linked directly to imperfect cornpetition and economies of scale. Among the different theoretical explanations of intra-industry trade, the various models based on product differentiation in the presence of scale economies have obtained the highest level of popularity. This is possibly the case because the notion that intra-industry trade is linked to product differentiation had been postulated a decade before models of the new trade theory established the link formally in the late 1970s.

Suggested Citation

  • Daniel M. Bernhofen, 2002. "Intra-Industry Trade in Homogeneous Products," Palgrave Macmillan Books, in: P. J. Lloyd & Hyun-Hoon Lee (ed.), Frontiers of Research in Intra-Industry Trade, chapter 4, pages 49-66, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28598-9_4
    DOI: 10.1057/9780230285989_4
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    Cited by:

    1. Sayeeda Bano, 2014. "An Empirical Examination of Trade Relations between New Zealand and China in the Context of a Free Trade Agreement," Working Papers in Economics 14/04, University of Waikato.

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