Intra-industry Specialisation in a Multi-country and Multi-industry Framework

Bela Balassa and Luc Bauwens

Economic Journal, 1987, vol. 97, issue 388, 923-39

Abstract: This paper tests alternative hypotheses as to the factors determining the extent of intraindustry trade. The explanatory power of the regressions for the entire group of countries exporting manufactured goods, as well as for trade among the developed countries, is relatively high and prac tically all the hypotheses concerning the impact of industry and coun try characteristics on intraindustry trade are supported by the empir ical results. Lower coefficients of determination have been obtained for trade between developed and developing countries and for trade am ong developing countries, but the estimates generally support the hyp otheses put forward in the paper in these cases also. Copyright 1987 by Royal Economic Society.

Date: 1987
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