| Abstract: | Tests of the Empirical Classification of Horizontal and Vertical IntraIndustry Trade. — Using longitudinal data this paper
shows the separation of international trade in (a) inter-industry trade, (b) horizontal intra-industry trade, and (c) vertical
intra-industry trade used in the empirical trade literature to be non-stable at the individual product level. The high level
of vertical intra-industry trade mentioned in the empirical literature probably covers up many products shifting between e.g.
vertical and horizontal intra-industry trade. The paper therefore questions the work of the last decade in the measurement
of intra-industry trade. |
