Search results

Since 1960s it has been realized that the bilateral trade at international level cannot be explained solely by the classical and neoclassical models of trade based on inter-industry trade. There is an existence of export and import within the same industry among the trading partners. Intra-industry trade (IIT) for products and product groups has been empirically observed by several studies. However, there is not much literature available on IIT in services. So also, from country perspective many studies are based on IIT for advanced countries. There is not much empirical evidence available for IIT among the emerging economies. The study aims to analyze the IIT in tourism services for five major emerging economies constituting BRICS – Brazil, Russia, India, China, and South Africa. The group constitutes 41% of world population with 24% of world GDP and 16% share in world trade. The study used both static and dynamic approaches to measure the IIT between India and other BRICS nations between 2018 and 2020. To empirically estimate the IIT, the study employs Grubel and Lloyd index and Brülhart index (MIIT). The study reveals that India had a very high level of intra-tourism trade with Brazil and South Africa. While with China and Russian Federation it was moderate. Results denote a correlation between the theory of international trade and tourism. There is two-way trade in BRICS tourism flows.

Comprehensive studies examining how Korean e-commerce trade works are currently limited. This study seeks to explore whether Korea’s e-commerce trade is more applicable to traditional trade theory or to modern theories. According to our analysis, the share of intra-industry trade (IIT) in modern trade theory is less than that of general trade for Korean e-commerce. Therefore, trade based on comparative advantage can be more valid in explaining e-commerce trade. From results in analyzing the gravity model, it was found that Korea’s e-commerce exports are higher as IIT with its FTA partners. In contrast, it is found that the lower the proportion of e-commerce trade, the higher chance for the import growth. Lastly, this study looked at what kind of comparative advantage is realized through imports. While Korea has been mostly exporting goods of high quality, its major trading partners import products based on price and selection of goods. In order for Korea’s e-commerce to grow, a more strategic approach is necessary. A strategy of high price based on superior quality is not effective, and as e-commerce has radically reduced sales and marketing costs, so a price reduction needs to be reflected in the price of goods for consumers.

1982 US intra‐industry trade (IIT) for 308 four‐digit manufacturing products is related to industry characteristics in a cross‐section regression study of the sources of two‐way trade. Results indicate the empirical relevance of models which present IIT as the result of international external economies in the production of differentiated producers goods. IIT as a means of satisfying consumers′ tastes for variety does not seem to be important, but oligopoly models of two‐way trade in consumer goods are supported owing to the association with concentration ratios. In contrast to recent studies which concluded that scale economies inhibit IIT in manufactured products, an examination of four different proxies for internal economies reveals that neither IIT nor inter‐industry trade based on comparative advantage is influenced significantly by scale effects, whether measured by size of establishment or by the productivity advantages of large plants.

Adam Smith's dictum that the division of labour is limited by the extent of the market is invoked as an explanation of observed intra‐industry trade. The strongest results from empirical studies of intra‐industry trade (relating it to level of development, time, falling trade barriers, and a manufacturing dummy) are all consistent with this view. Moreover, it makes it unnecessary to argue whether such trade reflects an aggregation problem, or to rely on new theories of international trade based on product differentiation and scale economies (neither of which have performed well in econometric work in this area).

This study investigates the patterns and determinants of Korea’s horizontal intra-industry trade by employing a dynamic panel data analysis. The main findings of the study are as follows. An increase in the market size of both trading partners is associated with a higher level of horizontal intra-industry trade. Dissimilar economic sizes and per capita incomes have a negative effect on trade in horizontally differentiated products. Geographical distance and trade imbalance serve as obstacles to horizontal intra-industry trade. These findings have policy implications for reconsidering the orientation of promoting trade. Inclusive economic growth in the region, taking advantage of neighboring nations and making efforts to reduce trade imbalances between trading economies, can accelerate further trade expansion through horizontal intra-industry trade.

In the run‐up to the 1992 single‐market deadline, there were concerns that inter‐industry adjustment pressures among EU member countries would increase. Such expectations were due partly to a perceived reversal of the post‐Second World War growth in intra‐industry trade (IIT). Finds that average IIT levels continued to rise during the implementation of the single market. It is argued that the concept of marginal IIT(MIIT) is of greater relevance to adjustment than “static” IIT. Some evidence is shown to support this proposition, and a comprehensive set of intra‐EU MIIT indices is calculated for the 1980s. Since average MIIT levels in the 1988‐92 period were higher than in the early 1980s, this analysis also supports the conclusion that, on average, adjustment to the single market was no more disruptive than that experienced during earlier stages of European integration. It also appears that the forces for inter‐industry adjustment are stronger in traditional, declining industries, whereas the expansion of relatively advanced industries tends to be more evenly shared by the EU member countries.

Intra‐industry trade (IIT) is the simultaneous import and export of goods within the same industry. This paper updates previous work on Australian intra‐industry trade and explores the determinants of IIT. It is the first Australian study to pool time series and cross‐sectional data for this purpose. The empirical work also explores whether the determinants of IIT vary between different groups of trading partners; a distinction is made between Australia’s traditional trading partners and newly emerging trading partners in the Asia Pacific region. The paper finds that Australian IIT has been growing as a proportion of total trade over the past 15 years. The empirical evidence presented suggests that average and relative per capita incomes, distance and trade orientation are all important factors explaining trends of IIT for Australia.

This paper proposes to use changes in intra‐industry specialization indicators over the period 1996‐2008 to assess the potential for factor adjustment pressures that may arise in the USA if the proposed USA‐Colombia Trade Promotion Agreement (TPA) is implemented. Results show that there is considerable scope for intra‐industry specialization between Colombia and the USA. The TPA should result in a larger increase in US exports to Colombia than US imports from Colombia, because Colombian exporters face much lower tariffs in the USA market than do US exporters in the Colombian market. Given the tariff asymmetry, scope for intra‐industry specialization, the relatively large size of the US market, and the small number of US industries that are likely to encounter factor adjustment pressures, the USA should ratify the agreement immediately.

Changes in intra‐industry specialization indicators are used to identify US industries that may face factor adjustment pressures as a result of the proposed USA‐Colombia TPA.

There is considerable scope for intra‐industry specialization between Colombia and the USA. Few US industries will be candidates for factor adjustment pressures.

The USA should ratify the TPA.

A new methodology is used to assess potential factor adjustment pressures associated with a TPA.

This article discusses the intra‐industry trade (IIT) aspect of international trade. The authors focus primarily on the trade between the United States and the 15 newly independent states of the former Soviet Union. Using data for these countries and the United States, this paper estimate the share of IIT of the 15 newly independent countries. The Pearson Product‐Moment Correlation and the Spearman's Rank Correlation Coefficients were employed to determine the relationship between the IIT share and the stages of economic development. The test of has been hypothesis was conducted to examine the significance of the relationship. As a result, the paper reveals that the IIT share is more closely related to GNP per capita than to the overall GNP, which suggests that GNP per capita may be a better measure of the stage of economic development.

International trade is a long-standing issue for the development of any country. In the traditional theory of trade exports or trade pattern arises because of supply side differences between countries such as technological or factor endowment differences. Such theories predict inter-industry trade but not intra-industry trade (IIT). But in contrary, the simultaneous export and import of products of the same sector was led after the industrialization of developed countries from the 1960s onwards, which was described as “IIT” by [Balassa, B. (1986). Oxford Economic Papers, 38, 220–233]. In this study, India's bilateral IIT with major Asian trading partners was analyzed and the trends in IIT level for horizontal and vertical IIT were observed separately, along with gravity model for the year 2009–2018. This study examined the geographic component in knowledge flows, which could be found at the international level and whether or not an exchange of knowledge is related to foreign trade, particularly IIT. To measure the IIT level for investigating trade patterns between India and member countries of major Asian trading partners, IIT index will be used, known as Grubel-Lloyd index.