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Pak-SAARC Intra-industry Trade

Author

Listed:
  • Adnan Akram

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

This paper analyses country-specific and industry-specific determinants of intra-industry trade (IIT) between Pakistan and other SAARC countries using panel data techniques. This paper also disentangles total IIT into horizontal and vertical IIT. Vertical IIT is further divided into high-quality and low quality IIT. This paper finds that country-specific variables are more important in explaining IIT relative to industry-specific variables. Decomposition of IIT shows that in the SAARC region Pakistan’s IIT is mostly comprised of the vertical IIT and to a lesser extent is horizontal IIT. The paper offers specific policy recommendations for the promotion of IIT in the SAARC region.

Suggested Citation

  • Adnan Akram, 2013. "Pak-SAARC Intra-industry Trade," PIDE-Working Papers 2013:93, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2013:93
    as

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    File URL: https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-93.pdf
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    References listed on IDEAS

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    1. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
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    4. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
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    6. Joe Stone & Hyun-Hoon Lee, 1995. "Determinants of intra-industry trade: A longitudinal, cross-country analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 131(1), pages 67-85, March.
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    8. Greenaway, David & Milner, Chris R, 1983. "On the Measurement of Intra-Industry Trade," Economic Journal, Royal Economic Society, vol. 93(372), pages 900-908, December.
    9. Kemal Turkcan, 2005. "Determinants of Intra-Industry Trade in Final Goods and Intermediate Goods between Turkey and Selected OECD Countries," Istanbul University Econometrics and Statistics e-Journal, Department of Econometrics, Faculty of Economics, Istanbul University, vol. 1(1), pages 21-40, May.
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    11. Greenaway, David & Hine, Robert C & Milner, Chris, 1995. "Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(433), pages 1505-1518, November.
    12. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
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    Cited by:

    1. Salahuddin & Javed Iqbal & Misbah Nosheen, 2020. "Economic & Cultural Distance & Regional Integration: Evidence from Gravity Model Using Disaggregated Data for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 59(2), pages 243-274.
    2. Vaqar Ahmed & Samavia Batool, 2014. "India-Pakistan Trade: A Case Study of the Pharmaceutical Sector," Working Papers id:6351, eSocialSciences.
    3. Saparamadu, Thilini & Akrimi, Nesrine, 2021. "What Leads to Intra-Industry Trade between Sri Lanka and South Asia?," OSF Preprints hm37b, Center for Open Science.
    4. repec:lje:journl:v:19:y:2014:i:sp:p:349-370 is not listed on IDEAS

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    More about this item

    Keywords

    IIT; Horizontal IIT; Vertical IIT;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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