| Abstract: | Intra-Industry Trade in the 1980s: A Panel Study. — This paper uses a panel data set to estimate the determinants of intra-industry trade in the 1980s. The data for trade covers 68 ISIC industries for the US, Japan, Germany, France, the UK and Italy from 1980 to 1987. UK data is used to measure industry characteristics. The results support, in particular, the positive effects of R&;D intensity and heterogeneity on intra-industry trade and the negative effects of scale and concentration. While fixed effects estimation indicates that industry characteristics explain most of the variation in intra-industry trade, differences in industry characteristics or in their effects vary significantly across countries. |
