Vertical and horizontal patterns of intra-industry trade between EU and candidate countries

Gabrisch, Hubert; Segnana, Maria Luigia

doi:10.4324/9780203937396.ch12

Cited by 8 publications

(10 citation statements)

References 16 publications

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“…Each country has one firm that produces one type of the quality-differentiated good 1 . Without any loss of generality, we assume that the foreign firm produces high-quality goods and that the home firm produces low-quality goods in the considered industry; this implies that the technology level of the foreign firm is higher than that of the home firm in that industry 2 . In Grossman and Helpman's [13] rising product quality model, the quality of each product is determined endogenously with R&D investments.…”

Section: Supply Sidementioning

confidence: 99%

“…For example, Bergoeing and Kohoe [1] found that trade within the OECD countries has increased at a much more rapid rate than OECD trade with the rest of the world. Additionally, Gabrisch and Segnana [2] determined that more than 50% of trade among EU countries was IIT, and that the intra-industry trade among EU countries was composed, in large part, of vertical IIT.…”

Section: Introductionmentioning

confidence: 99%

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Economic Development, Vertical Intra-Industry Trade and Gains from Trade

Niem¹,

Kim²

2014

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This paper investigates the impact of economic development on international trade and sources of gains from trade based on a theoretical model that considers consumers' preference diversity for quality and economies of scale in production. We confirm that both the volume of trade and the share of intra-industry trade increase with increases in the level of economic development in the region. We also find that the intra-industry trade share increases as the technology levels of the two countries become similar. Additionally, we find that both countries can gain from trade and that those gains come from three sources: internal economies of scale, more consumption, and more variety of goods.

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Section: Supply Sidementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Economic Development, Vertical Intra-Industry Trade and Gains from Trade

Niem¹,

Kim²

2014

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“…For example, reference [1] found that trade within the countries of the Organisation for Economic Co-operation and Development (OECD) has increased at a much more rapid rate than has trade between OECD countries and the rest of the world. Additionally, reference [2] determined that more than 50% of trade among EU countries was IIT, and that the intra-industry trade among EU countries was composed, in large part, of vertical IIT.…”

Section: Introductionmentioning

confidence: 99%

“…Thus, Home's per capita income is the average income of all of its consumers, which is directly proportional to the average of consumer's preference b/2 or just b 4. We consider an integrated economy as in[12] for our two country world.1 See[10,11] 2. This assumption is the same as[5], which assumes that the level of product quality is determined by the level of technology.…”

mentioning

confidence: 99%

Technology, Preference for Quality, and Vertical Intra-Industry Trade

Niem¹,

Kim²

2010

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This paper provides a simple theoretical model to investigate determinants of the vertical IIT based on Bertrand price competition. We find that the volume of trade is higher among countries where R&D investments are larger. In addition, the vertical IIT share increases with the similarity between two countries in terms of technology and per-capita income. Our theoretical findings are consistent with recent empirical findings

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“… See, among others, Aturupane et al . (), Hoekman and Djankov (), Caetano and Galego (), Jensen and Lüthje (), Gabrisch (), Gabrisch and Segnana (), and Ito and Okubo (). …”

mentioning

confidence: 99%

Converging in divergent ways

2017

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This paper focuses on intra-industry trade (IIT) between Central, Eastern and South-Eastern European (CESEE) countries and the EU-15. It assesses the determinants of intra-industry trade by combining a detailed product-level (HS-6) trade-flow database with country-level structural, monetary and institutional variables. Estimates are obtained with System-GMM and dynamic fractional response models. Our results suggest that structural factors driving IIT differ in the region, notably perceptions of corruption and the distance in the stock of physical capital from the EU-15. On the other hand, nominal variables such as the competitiveness of corporate taxation and the flexibility of exchange rate regimes contribute to the increase in intraindustry trade in the whole region.Dautovi c, Orszaghova and Schudel 7 Nine out of the top 10 bilateral IIT relationships worldwide in terms of IIT shares in total trade are between EU Member States (Fontagn e et al., 2005). Moreover, the share of two-way trade in the total trade of every individual country is more significant in intra-EU-15 trade than within non-EU markets (Fontagn e and

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Vertical and horizontal patterns of intra-industry trade between EU and candidate countries

Cited by 8 publications

References 16 publications

Economic Development, Vertical Intra-Industry Trade and Gains from Trade

Economic Development, Vertical Intra-Industry Trade and Gains from Trade

Technology, Preference for Quality, and Vertical Intra-Industry Trade

Converging in divergent ways

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