 The Geography of Intra-Industry TradeMary Amiti and Anthony Venables Chapter 6 in Frontiers of Research in Intra-Industry Trade, 2002, pp 87-106 from Palgrave Macmillan Abstract: Abstract One of the most robust empirical finds in the literature on intra-industry trade (IIT) is that measures of intra-industry trade relative to interindustry trade, such as the Grubel—Lloyd index, decline with distance. The objective of this chapter is to investigate why relative intra-industry trade (RIIT) declines in this way. There are two quite distinct ways in which this decline could arise. The first is that there are differences in the nature of the trading process that make IIT attenuate more rapidly with distance than do other forms of trade. For example, products in which IIT is important may also be products where shipping costs are particularly high, so RIIT measures decline with distance. Alternatively, industry may locate in such a way that neighbouring countries produce a similar mix of products, in which case IIT will be higher on shortrather than long-distance trades. Then, even if the trading process is the same for all products, the data may show a systematic relationship between RIIT and distance. Keywords: Transport Cost; Trade Cost; Factor Endowment; Industrial Location; Home Market Effect (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-28598-9_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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