Trade liberalisation, structural adjustment and intra-industry trade: A note


This note reports tests of the relationship between trade liberalisation and the levels of intra-industry trade, and between levels of IIT and structural adjustment in response to trade liberalisation. It has used a new approach by focussing on the impact of changes in protection on (i) changes in IIT, and (ii) differences in structural adjustment over time in high-IIT and low-IIT sectors.

This is a preview of subscription content, access via your institution.


  1. Aquino, Antonio, “Intra-Industry Trade and Inter-Industry Specialization as Concurrent Sources of International Trade in Manufactures”.Weltwirtschaftliches Archiv, Vol. 114, 1978, pp. 275–296.

    Article  Google Scholar 

  2. Balassa, Bela, “Trade Creation and Trade Diversion in the European Common Market”. In: Peter Robson (Ed.),International Economic Integration. Selected Readings. Brighton 1972, pp. 313–339.

  3. —, “Intra-Industry Specialization in a Multi-Country and Multi-Industry Framework”.The Economic Journal, Vol. 97, 1987, pp. 923–939.

    Article  Google Scholar 

  4. Bano, Sayeeda, Peter Lane, “The Extent, Growth and Determinants of Intra-Industry Trade Between New Zealand and Australia”. Paper presented to the Economics Congress. Canberra 1988.

  5. Bollard, Alan, Mary Anne Thompson (Eds.),Trans-Tasman Trade and Investment. The Effects of CER. New Zealand Institute of Economic Research, Research Monograph No. 38. Wellington 1987.

  6. Bureau of Industry Economics,Trade Liberalisation and Australian Manufacturing Industry: The Impact of the Australia-New Zealand Closer Economic Relations Trade Agreement. Canberra 1989.

  7. Caves, Richard E., “Intra-Industry Trade and Market Structure in the Industrial Countries”.Oxford Economic Papers, Vol. 33, 1981, pp. 203–223.

    Google Scholar 

  8. Finger, J. Michael, “Trade Overlap and Intra-Industry Trade”.Economic Inquiry, Vol.13, 1975, pp. 581–589.

    Article  Google Scholar 

  9. Glejser, Herbert, K. Goosens, M. van den Eede, “Inter-Industry versus Intra-Industry Specialisation in Exports and Imports, 1959-1970-1973”.Journal of International Economics, Vol. 12, 1982, pp. 363–369.

    Article  Google Scholar 

  10. Greenaway, David, Chris Milner, “Trade Imbalance Effects and the Measurement of Intra-Industry Trade”.Weltwirtschaftliches Archiv, Vol. 117, 1981, pp. 756–762.

    Article  Google Scholar 

  11. Grubel, Herbert G., Peter J. Lloyd,Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products. London 1975.

  12. Krugman, Paul R., “Intra-Industry Specialization and the Gains from Trade”.Journal of Political Economy, Vol. 89, 1981, pp. 959–973.

    Article  Google Scholar 

  13. Lundberg, Lars, PÄr Hansson, “Intra-Industry Trade and Its Consequences for Adjustment”. In: David Greenaway, P. K. Mathew Tharakan (Eds.),Imperfect Competition and International Trade. Brighton 1986, pp. 129–236.

  14. Marvel, Howard P., Edward J. Ray, “Intraindustry Trade: Sources and Effects on Protection”.Journal of Political Economy, Vol. 95, 1987, pp. 1278–1291.

    Article  Google Scholar 

  15. Ratnayake, Ravindra, Premachandra Athukorala,Patterns and Determinants of Intra- Industry Trade in Manufactures. The Australian Experience. School of Economics, La Trobe University, Economics Discussion Papers No. 88.14. Bundoora 1988.

  16. Tharakan, P.K. Mathew (Ed.),Intra-Industry Trade. Empirical and Methodological Aspects. Amsterdam 1983.

Download references


About this article

Cite this article

Hamilton, C., Kniest, P. Trade liberalisation, structural adjustment and intra-industry trade: A note. Weltwirtschaftliches Archiv 127, 356–367 (1991).

Download citation


  • Trade Liberalisation
  • Structural Adjustment
  • Modify Sector
  • Intraindustry Trade
  • Affected Sector