Bilateral Intra-Industry Trade between Countries with Different Factor Endowment Patterns

P. K. M. Tharakan

Chapter 5 in Intra-Industry Trade, 1989, pp 69-91 from Palgrave Macmillan

Abstract: Abstract In this paper we focus attention on the bilateral intra-industry trade (IIT)1 in manufactures between selected Developed Market Economies (DMEs)2 and the Developing Countries (DCs).3 In spite of the rapidly expanding literature on various aspects of intra-industry trade, the study of such trade flows of the DCs and the theoretical and policy implications thereof remain a rather neglected area. Nevertheless recent research suggests that the IIT of some of the Newly Industrialised Countries (NICs) has increased more rapidly than that of the DMEs (Lee, 1987). Further, there is some evidence of the prevalence of intra-industry trade in manufactures between countries with clearly different factor endowment patterns (Tharakan, 1986), although an extensive analysis of such trade at highly disaggregative levels in terms of products and countries is yet to be undertaken.

Keywords: Trade Flow; Factor Endowment; Industry Trade; Trading Country; Conjectural Variation (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-10464-2_5

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DOI: 10.1007/978-1-349-10464-2_5

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