Intra-Industry Trade

Branko Horvat
Additional contact information
Branko Horvat: The Institute for Advanced Studies

Chapter 13 in The Theory of International Trade, 1999, pp 82-84 from Palgrave Macmillan

Abstract: Abstract Intra-industry trade is trade among countries with similar factor endowments and in commodities with similar factor intensities (Davis, 1995, p. 204). According to the HO theory, such trade must be nonexistent.2 Not so in the real world. Trade among countries in the European Union has been developing fast, and intra-industry trade much faster than the rest of the trade. Thus, countries are not only specializing in products of different industries but also in different varieties of the same commodity from within the same industry. What are the reasons for intra-industry trade? The reasons are many and they have nothing to do with factor proportions.

Keywords: Foreign Direct Investment; Petrol Consumption; Monopolistic Competition; Small Domestic Market; Consumer Budget (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-333-98338-6_13

Ordering information: This item can be ordered from
http://www.palgrave.com/9780333983386

DOI: 10.1057/9780333983386_13

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().