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Review of World Economics

, Volume 130, Issue 2, pp 418–427 | Cite as

Adjustment and the measurement of marginal intra-industry trade

  • David Greenaway
  • Robert C. Hine
  • Chris Milner
  • Robert Elliott
Shorter Papers & Comments

Conclusions

In this paper, we have set out to do two things: first to investigate the properties of the index of MIIT recently proposed by Hamilton and Kniest; second to evaluate how useful the index is as an input to relating IIT and adjustment. In investigating the former, we found that there were a number of problematic properties of the H-K index. Most notably it censors the data in a non-random way by excluding important information; it inflates the measured MIIT by using nominal rather than real data; and it is unsealed. These properties not only bias the measure upward, they make it inappropriate from the standpoint of evaluating adjustment problems. Our discussion concludes with several suggestions as to how we might identify and measure MIIT more effectively from the standpoint of evaluating the adjustment implications of trade expansion.

Keywords

Trade Liberalisation Trade Flow Industry Trade Adjustment Issue Trade Expansion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. Greenaway, David, Chris R. Milner,The Economics of Intra-Industry Trade. Oxford 1986.Google Scholar
  2. — “Intra-Industry Trade: Current Perspectives and Unresolved Issues.”Weltwirtschaftliches Archiv, Vol. 123, 1987, pp. 39–57.CrossRefGoogle Scholar
  3. —,Robert C. Hine, “Intra-Industry Specialization, Trade Expansion and Adjustment in the European Economic Space.”Journal of Common Market Studies, Vol. 29, 1991, pp. 603–622CrossRefGoogle Scholar
  4. Hamilton, Clive, Paul Kniest, “Trade Liberalisation, Structural Adjustment and Intra-Industry Trade: A Note.”Weltwirtschaftliches Archiv, Vol. 127, 1991, pp. 356–367.CrossRefGoogle Scholar
  5. Kol, Jacob,The Measurement of Intra-Industry Trade. D.Phil. Thesis, Erasmus University. Rotterdam 1988.Google Scholar
  6. Milner, Chris R., “Weighting Problems in the Measurement of Intra-Industry Trade.”Applied Economics, Vol. 20, 1988, pp. 295–302.CrossRefGoogle Scholar

Copyright information

© Institut fur Weltwirtschaft an der Universitat Kiel 1994

Authors and Affiliations

  • David Greenaway
  • Robert C. Hine
  • Chris Milner
  • Robert Elliott

There are no affiliations available

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