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An Empirical Analysis of Intra-Industry Trade and Multinational Firms

Elizabeth Wickham and Henry Thompson

Chapter 7 in Intra-Industry Trade, 1989, pp 121-144 from Palgrave Macmillan

Abstract: Abstract Trade in goods which are similarly classified in production but are not perfect substitutes in consumption is apparently a growing component of world trade. Reduced tariffs enacted by customs unions have resulted in increased gross trade, while net exports and imports within commodity classifications change very little. Trade theory which assumes constant returns to scale and homogeneous goods generally predicts increased specialisation and inter-industry trade.

Keywords: Multinational Firm; Total Trade; Country Pair; National Firm; Factor Price Equalisation (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_7

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DOI: 10.1007/978-1-349-10464-2_7

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