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Developing Countries in Light of Intra-Trade

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  • Broll, Udo
  • Gilroy, Bernard Michael

Abstract

This paper examines one possible explanation for intra-trade flows derived in light of an international environment characterized by product differentiation, economies of scale, and monopolistic competition. The analysis may be structured within a more general formulated Heckscher-Ohlin framework, in which intra-trade flows may be explained through product differentiation while conventional explanations apply to inter-industry trade (see e.g. Helpman (1981), (1984), Kierzkowski (1984)). The model analyses the relationship between the total volume of trade, the share of intra-trade on cross-country differences in relative factor endowments and relative country size in a simple integrated two country world.

Suggested Citation

  • Broll, Udo & Gilroy, Bernard Michael, 1985. "Developing Countries in Light of Intra-Trade," MPRA Paper 18046, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18046
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    References listed on IDEAS

    as
    1. David Greenaway, 1983. "Intra-industry and inter-industry trade in Switzerland," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 119(1), pages 109-121, March.
    2. Broll, Udo & Gilroy, Bernard Michael, 1985. "International Division of Labour and Intra-Trade," MPRA Paper 18042, University Library of Munich, Germany.
    3. Helpman, Elhanan, 1984. "A Simple Theory of International Trade with Multinational Corporations," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 451-471, June.
    4. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Broll, Udo & Gilroy, Bernard Michael, 1986. "Indian Industrialisation, Multinational Enterprises and Gains from Trade," MPRA Paper 18057, University Library of Munich, Germany.
    2. Gilroy, Bernard Michael & Broll, Udo, 1988. "International Cooperation and Intra-Industrial Transactions," MPRA Paper 18705, University Library of Munich, Germany.
    3. Gilroy, Bernard Michael, 1987. "The role of intra-firm trade," MPRA Paper 18039, University Library of Munich, Germany.
    4. Gilroy, Bernard Michael, 1988. "Die Schweiz im Spannungsfeld der Welthandels- und Strukturanpassungsprobleme [Switzerland in the area of conflict of world trade and structural adjustment problems]," MPRA Paper 21080, University Library of Munich, Germany.

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    More about this item

    Keywords

    Developing countries; trade; intra-trade flows; cross-country analysis;
    All these keywords.

    JEL classification:

    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • F1 - International Economics - - Trade

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