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Industrial Structure and Australia-UK Intra-industry Trade

Jayant Menon (), Sir David Greenaway () and Chris Milner

The Economic Record, 1999, vol. 75, issue 228, 19-27

Abstract: This paper tests industry-specific hypotheses of the determinants of intraindustry trade in the context of Australia-U.K. trade. In doing so, it separates intraindustry trade (IIT) into IIT in horizontally differentiated products and IIT in vertically differentiated products. It finds that the latter is the dominant form of IIT. Further, the paper investigates the robustness of empirical results on testing industry-specific hypotheses to the choice of national (U.K. or Australian) industrial structure characteristics. The assumption of uniform industrial structures across countries adopted in other studies is shown not to be justified. Copyright 1999 by The Economic Society of Australia.

Date: 1999
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