Does the Measurement of Intra-Industry Trade Matter? - This paper discusses different methods of capturing the main aspects of the Chamberlin-Heckscher-Ohlin-Samuelson model. Of particular interest are the distinction between horizontal and vertical intra-industry trade, the adjustment of aggregation biases, and the definition of inter- and intra-industry specialization at product level. The main findings are that it is important to disentangle horizontal and vertical intra-industry trade, and to consider specialization patterns within refined product groups. Moreover, there is a non-linear relationship between intra-industry trade and economies of scale that may explain contradictory results in the literature.
|Journal||Review of World Economics|
|Publication status||Published - 2002|
Subject classification (UKÄ)