Country size,income level and intra-industry trade

This study investigates three testable hypotheses of intra-industry trade., It begins by developing a theoretical, two country model., The model explicitly includes two goods: differentiated products and homogeneous goods., Then three empirical hypotheses are derived as follows., The share of intra-industry trade will be large: (a) if the two economies are of similar size, (b) if the capital-labour endowment ratio of both countries is similar, and (c) if the total size of the two economies is large., From the cross-sectional analysis using 1970–1994 data, results are obtained that support the model., Furthermore, the results are confirmed using panel analysis on the pooled data.,     

Industry-specific determinants of vertical intra-industry trade: the case of EU new member states’ agri-food sector

The determinants of intra-industry agri-food trade are analysed to only a limited extent in the literature. This article investigates the industry-specific determinants of vertical intra-industry agri-food trade between new member states of the EU and the other EU countries for the period 1999–2010 by applying a dynamic panel data model. Results suggest that IIT is mainly low vertical in nature, suggesting regional export of low-quality products to EU markets. Results also show that vertical product differentiation and FDI are positively related to VIIT, suggesting that quality growth and investments foster vertical intra-industry trade. As to productivity and factor endowments a negative relationship with VIIT was found, implying the labour abundant and similar nature of NMS agricultural sectors.     

产业内贸易类型、利益与经济增长

在分析产业内贸易测度、分类及其利益的基础上,探讨产业内贸易促进经济增长的机制,并从产业内贸易总水平、垂直差异型产业内贸易、水平差异型产业内贸易等角度实证分析其对中国经济增长的影响。研究发现:垂直差异性产业内贸易在经济增长过程中起着促进作用,而水平差异性产业内贸易对经济增长起着阻碍作用。     

Horizontal and vertical intra-industry trade in Australian manufacturing: does trade liberalization have any impact?

This paper contributes to the literature on intra-industry trade (IIT) by disentangling such trade into horizontally and vertically differentiated products, and investigating their determinants in the context of trade liberalization in Australia. IIT in Australian manufacturing has increased following trade liberalization in 1980s and is increasingly dominated by vertically differentiated products. Industry level evidence confirms that the failure to segregate IIT into horizontally and vertically differentiated products produces misleading results as their determinants differ. Also, structural changes brought about by the policy liberalization appear to have an impact on total as well vertical IIT.     

Oligopolistic Competition and Intra-industry Trade: Evidence From the OECD

This paper develops a general reciprocal-markets model of intra-industry trade in oligopolistic industries. It shows that the effects of industry characteristics on the extent of bilateral intra-industry trade, as measured by the Grubel-Lloyd index, are invariant to whether firms compete over homogeneous or differentiated products. Based on this model, we investigate industry determinants of bilateral intra-industry trade, using internationally comparable industry data for 22 manufacturing industries in 12 OECD countries during 1970–1985. Our estimates indicate that, even after controlling for idiosyncratic industry and country-pair effects, our measures of the industry determinants explain variations in the intensity of bilateral intra-industry trade, for the most part, in accord with what the theory predicts.     

European Integration, Intra-industry Trade in Vertically Differentiated Products and the Balkan Countries

The aim of this paper is to examine the relation between the integration process and the intensity of intra-industry trade between two countries of different levels of development. Our theoretical model and results indicate that trade liberalization and the establishment of the Free Trade Areas between the Balkan countries and the EC have led to the growth of the intra-industry trade between Greece—EC member state—and those countries. The main instruments of this process have been the Europe Agreements and the Stabilization and Association Agreements between the Balkan countries and the EC. The paper presents a model in vertically differentiated products in a Free Trade Area context and proceeds to depict the intensity of intra-industry trade between Greece and the Balkan countries.      

Extra-union exports of industrial goods from customs unions among developing countries

Formation of a customs union by developing countries is likely to affect extra-union exports of industrial goods. Two competing hypotheses as to the likely direction of such effects are presented, related to the more conventional concepts of trade creation and trade diversion, and tested. On one hand, increased competition and intra-industry specialization may lead to the emergence of larger, more specialized firms which will be more able to export to the rest of the world. On the other hand, expansion of the protected ‘domestic’ marke may induce firms to sell domestically products that they would otherwise have exported. Evidence from the Central American Common Market (CACM) is consistent with each of the two hypotheses for different goods. In aggregate, CACM extra-union exports of industrial goods did not keep pace with the increase in extra-union imports during 1962–1968.     

中美木质林产品产业内贸易的实证研究——基于1992—2009年的进出口贸易数据

采用UNcomtrade数据库的中美木质林产品贸易数据,利用G-L指数、G-L修正指数、Aquino指数、Brülhart边际产业内贸易指数及Thom&McDowell水平型和垂直型产业内贸易指数,对1992—2009年中美木质林产品产业内贸易的水平和结构进行实证分析。结果表明:中美木质林产品产业内贸易水平总体较低,贸易方式仍以产业间贸易为主;中美木质林产品贸易的增长由产业间贸易和产业内贸易共同引发;产业内贸易方式以垂直型产业内贸易为主。     

中国农产品产业内贸易现状分析

By using HS classification, the author has divided total agricultural products into 24 categories. The paper calculated the G-L intra-industry trade index, Brülhart marginal intra-industry trade index, and Thom & McDowell marginal industry trade index for each type of agricultural products during the period from 1996 to 2005 in China. The conclusion shows the overall level of agricultural intra-industry trade is relatively low, and Brülhart index indicates China’s agricultural products decades of improvement mainly from inter-industry trade, at the same time Thom & McDowell index shows that China’s agricultural intra-industry trade growth is mainly from the growth of vertical intra-industry trade. __________ Translated from Guoji maoyi wenti 国际贸易问题 (Journal of International Trade), 2008, (1): 14–20     

Foreign Trade Patterns Between Estonia and the EU

In this paper, we focus on the development of the foreign trade flows between Estonia and the EU. We observe rapid reorientation of the trade flows from the former Soviet Union towards Western markets because of economic reforms and foreign trade liberalization. Moreover, we determine the commodity groups with a comparative advantage in the EU market and analyze its dynamics. Further analysis of the intra-industry trade (ITT) shows that vertical IIT plays a dominant role in Estonian-EU IIT flows. Shares of total, vertical, and horizontal IIT have grown rapidly since 2004, the year of accession to the EU.     

Intra-Industry Trade in the Pacific Basin

The purpose of this paper is to investigate the degree of intra-industry trade in the Pacific Basin which includes developing countries as well as advanced countries. The Aquino index, with slight rearrangement for aggregation over countries and correction for trade imbalance, is chosen as the measurement. The findings are that the major hypotheses about the intra-industry trade which are believed to be applicable mainly to advanced countries could also be applicable to developing countries. Industries with high capital intensity, high degree of product differentiation, and large economics of scale, show high degree of intra-industry trade in the Pacific Basin. [420]     

中国农产品产业内贸易影响因素的实证研究

本文首先运用Grubel-Lloyd计量法和GHM分解法对1997—2008年中国农产品产业内贸易以及垂直型和水平型农产品产业内贸易水平分别加以测度,然后运用面板数据从国家层面对中国农产品产业内贸易影响因素进行了实证研究。结果表明:人均收入差距、外商直接投资、农产品贸易不平衡、贸易伙伴的贸易开放度是影响中国农产品产业内贸易的主要国家层面因素;区域优惠贸易安排、地理距离、市场规模因素对中国农产品产业内贸易发展也有不容忽视的影响。     

INCREASING COSTS IN PRODUCT DIVERSIFICATION AND GAINS FROM TRADE*

The purpose of this paper is to extend a monopolistically competitive trade model with symmetric costs to one with asymmetric costs in product diversification. Both the trade pattern and the effects of the opening of trade on welfare are examined. It is shown that: (1)the larger country will be a net importer of differentiated products, which contradicts the result of Krugman (1980); (2)the greater the size of the country, the smaller is the share of the intra-industry trade, and (3)the larger the trading partner of a country, the larger are the gains from trade of the country. Some of these results duplicate those from recent studies. However, our results are based on asymmetric costs. In particular, (3) suggests that the presence of increasing-returns-to-scale technology does not always imply that the large country gains from its large market.     

Fortress Europe: Jericho or Château d’If?

Traditional analysis of customs union formation suggests that it leads to an increase in members' external tariffs. This paper stresses two aspects of European trade and trade policy—a large volume of intra-industry trade between similar countries and a political motivation for tariffs—and highlights a role for tariff coordination in a model of differentiated products in which tariffs affect domestic costs and thus export prices and the magnitude of monopolistic rents. We show that when workers choose the tariffs and receive but a small portion of tariff revenues, the union's tariff wall falls.     

中美农产品加工业产业内贸易影响因素研究

分析了中美农产品加工业贸易状况,并对两国农产品加工业产业内贸易的影响因素进行了实证研究。结果表明,近年来中美农产品加工业贸易快速发展;而中美贸易不平衡对两国农产品加工业产业内贸易起到了显著的抑制作用,同时中美两国人均GDP差异、行业开放程度则较强地促进了两国农产品加工业产业内贸易的发展。基于此,中国应侧重提升中美农产品加工业产业内贸易水平,实施产业间贸易和产业内贸易双轮驱动战略。     

我国海峡两岸农产品产业内贸易的实证分析

本文选取2001—2006年我国海峡两岸农产品贸易数据,利用G-L指数和B指数从整体和分类两个层面对我国海峡两岸间农产品的产业内贸易状况进行了实证分析,并得出以下结论：我国海峡两岸农产品以产业间贸易为主,产业内贸易水平较低,且在贸易结构上具有较明显的互补性;2001—2006年我国海峡两岸间的贸易变动主要由产业间贸易引起。在此基础上,提出今后两岸农产品产业内贸易的发展方向。     

CAFTA对中国与东盟机电产品产业内贸易的影响

2010年CAFTA（中国—东盟自由贸易区）初步建立。分析CAFTA建立后对于贸易、投资、经济水平、规模经济等一系列产业内贸易影响因素产生的作用,由此阐述CAFTA对中国与东盟机电产品产业内贸易所产生的影响。     

Competing Industrial Standards and the Impact of Trade Liberalization

The main purpose of this study is to illustrate, with simple trade theory, the relationship between competing industrial standards and trade liberalization. We assume that there are two competing industrial standards in an international context, each of which applies to a group of differentiated products. A product can be used only in combination with other products based on the same industrial standard. We examine the impact of trade liberalization (i.e., a decline in trade costs) on consumers’ choice of a standard. It will be shown that the degree of indirect network effects, captured with substitution between differentiated products, plays an important role as a determinant of the impact of trade liberalization.     

The endogeneity of the Optimum Currency Area criteria in East Asia

The Asian financial crisis in mid-1997 has increased interest in policies to achieve greater regional exchange rate stability in East Asia. It has renewed calls for greater monetary and exchange rate cooperation. A country's suitability to join a monetary union depends, inter alia, on the trade intensity and the business cycle synchronization with other potential members of the monetary union. However, these two Optimum Currency Area criteria are endogenous. Theoretically, the effect of increased trade integration (after the elimination of exchange fluctuations among the countries in the region) on the business cycle synchronization is ambiguous. Reduction in trade barriers can potentially increase industrial specialization by country and therefore resulting in more asymmetry business cycles from industry-specific shocks. On the other hand, increased trade integration may result in more highly correlated business cycles due to common demand shocks or intra-industry trade. If the second hypothesis is empirically verified, policy makers have little to worry about the region being unsynchronized in their business cycles as the business cycles will become more synchronized after the monetary union is formed. This paper assesses the dynamic relationships between trade, finance, specialization and business cycle synchronization for East Asian economies using a Generalized Method of Moments (GMM) approach. The dynamic panel approach improves on previous efforts to examine the business cycle correlations — trade link using panel procedures, which control for the potential endogeneity of all explanatory variables. Based on the findings on how trade, finance and sectoral specialization have effects on the size of common shocks among countries, potential policies that can help East Asian countries move closer toward a regional currency arrangement can be suggested. The empirical results of this study suggest that there exists scope for East Asia to form a monetary union.     

海峡两岸产业内贸易动态变化特征分析

选用Aquino指数,定量地分析了海峡两岸产业内贸易在二者贸易份额中的比重。在此基础上,进一步将产业内贸易细分为垂直型和水平型两种形式,选取2001—2008年的相关数据,运用GMH法对两岸的产业内贸易结构特征进行全面的实证分析。结果发现:两岸贸易产业内贸易水平还比较低,但产业内贸易增长迅速,尤其在中高技术层面产品上产业内贸易逐步增强;两岸产业内贸易以垂直型为主,但最近几年,水平型所占比重增长较快,有垂直型向水平型发展的趋势;两岸产业内贸易在区域结构上也呈现出动态演进的特征。