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Intra-Industry Trade and Differences in Technology

Author

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  • Gilroy, Bernard Michael
  • Broll, Udo

Abstract

The approach focussed on allows one to examine theoretically the empirical observation of increasing levels of intra-industry trade flows founded upon an increasing similarity of technology between countries and firms. Within the framework of a simple model of international trade in differentiated goods it is demonstrated that an in an international free trade scenario ranking high in product differentiation and monopolistic market structures the intensity of intra-industry trade is dependent upon the degree of differences present in applied technology. Technologlcal similarity among nations results in high levels of intra-industry trade; whereas persistent differences in available technology reduces intra-industrial trade flows.

Suggested Citation

  • Gilroy, Bernard Michael & Broll, Udo, 1988. "Intra-Industry Trade and Differences in Technology," MPRA Paper 18710, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18710
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    References listed on IDEAS

    as
    1. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February.
    2. Economides, Nicholas, 1984. "Do increases in preference similarity (across countries) induce increases in trade? : An affirmative example," Journal of International Economics, Elsevier, vol. 17(3-4), pages 375-381, November.
    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. Broll, Udo & Gilroy, Bernard Michael, 1985. "International Division of Labour and Intra-Trade," MPRA Paper 18042, University Library of Munich, Germany.
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    Cited by:

    1. Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
    2. Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.

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    More about this item

    Keywords

    Globalization; intra-firm trade; differentiation;
    All these keywords.

    JEL classification:

    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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