Intra-industry trade by types: What can we learn from Portuguese data?

Abstract

Intra-industry trade, product differentiation, unit values, comparative advantage, Portugal,

Driving forces of vertical intra-industry trade in Europe 1996–2005

“…One the one hand, some of the estimated relationships are insignificant, depending on how IIT is separated into HIIT and VIIT. Crespo and Fontoura (2004) also use GDP per capita as a proxy of physical capital and find a positive relationship with VIIT. On the other hand, Gullstrand (2002b), who also uses GDP per capita as a proxy of physical capital, expects a negative relationship with VIIT.…”

“…Many authors in empirical analysis expect a positive relationship between VIIT and differences in factor endowments, see e.g. Durkin and Krygier (2000), Martín-Montaner and Ríos (2002), Mora (2002), Crespo and Fontoura (2004) and Zhang et al (2005). However, it is not sufficient to look at the production side; the demand side needs to be included too as discussed above.…”

“…Fontagné and Freudenberg (1997) and Greenaway et al (1995) separate vertically differentiated products from horizontally differentiated products by the use of a dispersion factor of 15 or 25%. In order to evaluate the robustness of the results, Greenaway et al (1995), Aturupane et al (1999), Durkin and Krygier (2000), Gullstrand (2002a), Mora (2002) and Crespo and Fontoura (2004) conduct a regression analysis for both dispersion factors and find that the results are not particularly sensitive as regards the chosen dispersion factor. See Nielsen and Lüthje (2002) and Lüthje (2003) for a further discussion of this method.…”

“…Crespo and Fontoura (2004), but, as the focus of the analysis is on the industrial production, GDP is too broad a measure. A more suitable measure of a country's production size in relation to its trading partners seems to be the country's share of the total industrial production of all the analyzed countries, p. Accordingly, we measure the production size of a country by the country's share of the total industrial production of the analyzed European countries.…”

Measuring vertical and horizontal intra-industry trade: the case for Turkey

“…What we observe for HQVIIT for most of the period is the reverse of what has been observed for the UK (Greenaway et. al, 1995), Spain (Blanes and Martin, 2000) and Portugal (Crespo and Fontoura, 2004), where HQVIIT steadily increases and even overtakes LQVIIT. Whether what we observed for Turkey beginning in 1999 will develop into a similar trend is yet to be seen.…”