The nature and significance of intra-industry trade

Roy J. Ruffin

Economic and Financial Policy Review, 1999, issue Q IV, 2-9

Abstract: In this article, Roy Ruffin gives an overview of intra-industry trade for the generalist. Intra-industry trade represents international trade within industries rather than between industries. Such trade is more beneficial than inter-industry trade because it stimulates innovation and exploits economies of scale. Moreover, since productive factors do not switch from one industry to another, but only within industries, intra-industry trade is less disruptive than inter-industry trade.

Keywords: Trade; Industries (search for similar items in EconPapers)
Date: 1999
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