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An Empirical Analysis of Intra-Industry Trade and Multinational Firms

In: Intra-Industry Trade

Author

Listed:
  • Elizabeth Wickham
  • Henry Thompson

Abstract

Trade in goods which are similarly classified in production but are not perfect substitutes in consumption is apparently a growing component of world trade. Reduced tariffs enacted by customs unions have resulted in increased gross trade, while net exports and imports within commodity classifications change very little. Trade theory which assumes constant returns to scale and homogeneous goods generally predicts increased specialisation and inter-industry trade.

Suggested Citation

  • Elizabeth Wickham & Henry Thompson, 1989. "An Empirical Analysis of Intra-Industry Trade and Multinational Firms," Palgrave Macmillan Books, in: P. K. M. Tharakan & Jacob Kol (ed.), Intra-Industry Trade, chapter 7, pages 121-144, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-10464-2_7
    DOI: 10.1007/978-1-349-10464-2_7
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    Cited by:

    1. Assaf Razin & Efraim Sadka & Chi-Wa Yuen, 1999. "An Information-Based Model of Foreign Direct Investment: The Gains from Trade Revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(4), pages 579-596, November.

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