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Long-term Trends in Intra-Industry Trade

In: Frontiers of Research in Intra-Industry Trade

Author

Listed:
  • Lionel Fontagné
  • Michael Freudenberg

Abstract

This chapter examines European trade patterns over the period 1980–99, using data on values and unit values of bilateral trade flows at a very detailed level. Reviewing the related concerns for economic policy permits the identification of a key issue: quality matters. A new method of measurement highlights the fact that the development of intra-industry trade is associated with a specialization of countries along quality lines. This result sheds light on the often neglected potential adjustment costs of intra-industry trade in vertically differentiated products.

Suggested Citation

  • Lionel Fontagné & Michael Freudenberg, 2002. "Long-term Trends in Intra-Industry Trade," Palgrave Macmillan Books, in: P. J. Lloyd & Hyun-Hoon Lee (ed.), Frontiers of Research in Intra-Industry Trade, chapter 8, pages 131-158, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28598-9_8
    DOI: 10.1057/9780230285989_8
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    Cited by:

    1. repec:wsr:wpaper:y:2009:i:030 is not listed on IDEAS
    2. Margarita Katsimi & Thomas Moutos, 2005. "Inequality and Relative Reliance on Tariffs: Theory and Evidence," CESifo Working Paper Series 1457, CESifo.
    3. Filippo Reganati & Rosanna Pittiglio, 2005. "Vertical Intra-Industry Trade: Patterns And Determinants In The Italian Case," Quaderni DSEMS 06-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    4. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    5. Amador, João & Cabral, Sónia & Ramos Maria, José, 2007. "International Trade Patterns over the Last Four Decades: How does Portugal Compare with other Cohesion Countries?," MPRA Paper 5996, University Library of Munich, Germany.
    6. Ekaterina Sprenger, 2009. "A survey on European integration, offshoring and trade," Memoranda - Policy Papers 43, Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    7. Athanasoglou Panagiotis & Backinezos Constantina & Evagelia A. Georgiou, 2010. "Export performance, competitiveness and commodity composition," Working Papers 114, Bank of Greece.
    8. Mohammed B. Yusoff & Ilza Febrina, 2014. "Trade Openness, Real Exchange Rate, Gross Domestic Investment and Growth in Indonesia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(1), pages 1-13, February.

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