Does the Measurement of Intra-Industry Trade Matter?

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Abstract

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.
Original languageEnglish
Pages (from-to)317-339
JournalReview of World Economics
Volume138
Issue number2
Publication statusPublished - 2002

Subject classification (UKÄ)

  • Economics

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