Advertisement

Weltwirtschaftliches Archiv

, Volume 135, Issue 1, pp 48–61 | Cite as

Measuring marginal intra-industry trade

  • Rodney Thom
  • Moore McDowell
Articles

Abstract

Measuring Marginal Intra-Industry Trade. — Trade liberalisation and adjustment: how important is intra-industry trade? This paper focuses on the appropriate measurement of intra-industry trade as indicator of structural adjustment costs. It is argued that existing dynamic versions of the Grubel-Lloyd index reflect horizontal trade only and classify vertical intra-industry trade with inter-industry trade. The paper proposes a method to distinguish between horizontal and vertical trade and applies these techniques to emerging trade between the EU and the economies of central and eastern Europe.

F1 F2 

Zusammenfassung

Zur Messung des marginalen intra-industriellen Handels. — Handelsliberalisierung und Anpassung: Wie wichtig ist der intra-industrielle Handel? Der Aufsatz konzentriert sich auf die zweckmäβige Messung von intra-industriellem Handel als Indikator für strukturelle Anpassungskosten. Die Verfasser behaupten, daβ die vorhandenen dynamischen Versionen des Grubel-Lloyd-Index nur den horizontalen Handel widerspiegeln und den vertikalen intra-industriellen Handel mit dem interindustriellen Handel gleichsetzen. Sie schlagen eine Methode vor, nur zwischen horizontalem und vertikalem Handel zu unterscheiden, und wenden diese Techniken auf den zunehmenden Handel zwischen der EU und den Volkswirtschaften Mittel- und Osteuropas an.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Abd-el-Rahman, K. (1991). Firms’ Competitive and National Comparative Advantages as Joint Determinants of Trade Composition.Weltwirtschaftliches Archiv 127 (1): 83–97.CrossRefGoogle Scholar
  2. Brenton, P., and D. Gross (1997). Trade Reorientation and Recovery in Transition Economies.Oxford Review of Economic Policy 13 (2): 65–76.CrossRefGoogle Scholar
  3. Brülhart, M. (1994). Marginal Intra-Industry Trade: Measurement and the Relevance for the Pattern of Industrial Adjustment.Weltwirtschaftliches Archiv 130 (3): 600–613.CrossRefGoogle Scholar
  4. Falvey, R. E. (1981). Commercial Policy and Intra-Industry Trade.Journal of International Economics 1 (4): 495–511.CrossRefGoogle Scholar
  5. Greenaway, D., and J. Torstensson (1997). Back to the Future: Taking Stock on IntraIndustry Trade.Weltwirtschaftliches Archiv 133 (2): 249–269.CrossRefGoogle Scholar
  6. Grubel, H. G., and P. Lloyd (1975).Intra-Industry Trade. London: Macmillan.Google Scholar
  7. Hamilton, C., and P. Kniest (1991). Trade Liberalisation, Structural Adjustment and Intra-Industry Trade.Weltwirtschaftliches Archiv 127 (3): 356–367.CrossRefGoogle Scholar
  8. Hoekman, B., and S. Djankov (1996). Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports. CEPR Discussion Paper 1377. London.Google Scholar
  9. Landesmann, M. (1995). The Pattern of East-West European Integration: Catching Up or Falling Behind? In R. Dobrinsky and M. Landesmann (eds.),Transforming Economies and European Integration. Aldershot: Edward Elgar.Google Scholar
  10. Menon, J., and P. Dixon (1996). How Important Is Intra-Industry Trade in Economic Growth?Open Economies Review 7 (2): 161–175.CrossRefGoogle Scholar

Copyright information

© Institut für Weltwirtschaft an der Universität Kiel 1999

Authors and Affiliations

  • Rodney Thom
  • Moore McDowell

There are no affiliations available

Personalised recommendations