Taking Grubel and Lloyd to dance in the city: Domestic intra-industry trade in China

Peter Egger, Jie Li and Jie Ouyang

Economics Letters, 2024, vol. 244, issue C

Abstract: We assess theoretical predictions regarding the determinants of domestic intra-industry trade in large panel data of pairs of 276 cities, as well as 42 sectors, over three years in China. We find that geographical and technological distances are the main impediments of intra-industry trade, being more important than relative endowment differences. This confirms expectations based on new trade theory in a novel data environment.

Keywords: Intra-industry trade; Input–output data; New trade theory (search for similar items in EconPapers)
JEL-codes: F12 F14 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524004099

DOI: 10.1016/j.econlet.2024.111925

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