Intra‐industry trade: A Krugman–Ricardo Model and Data

Kwok Tong Soo

Economica, 2016, vol. 83, issue 330, 338-355

Abstract: This paper develops a model of international trade with a continuum of countries and sectors, which combines Ricardian comparative advantage and increasing returns to scale. Trade consists of both inter‐ and intra‐industry trade. The model predicts that the trade‐weighted Grubel–Lloyd index of intra‐industry trade is positively related to the number of exported sectors, and is negatively related to the number of imported sectors. Empirical evidence from a panel of countries using the UN Comtrade database supports these predictions, and the model fits the data better for non‐OECD than for OECD countries.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/ecca.12173

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:econom:v:83:y:2016:i:330:p:338-355

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0427

Access Statistics for this article

Economica is currently edited by Frank Cowell, Tore Ellingsen and Alan Manning

More articles in Economica from London School of Economics and Political Science Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().