Two-way international trade and production in Italy: a country/industry specific analysis

Filippo Reganati () and Rosanna Pittiglio ()

STUDI ECONOMICI, 2007, vol. 2007/91, issue 91, 75-89

Abstract: Two-way International Trade and Production in Italy: A Country/industry Specific Analysis (by Filippo Reganati, Rosanna Pittiglio) - ABSTRACT: Economic interactions among high-income developed countries are characterized by high degrees of both intra-industry trade and intra-industry affiliate production and sales. Similar high-income countries both heavily trade with and invest into each other. This paper examines the determinants of Italian intra-industry trade and intra-industry production with most European trading partners using a dataset where variables are different not only between countries but also between sectors of the same country. Using different econometric methods, the results obtained suggest that intra-industry trade and intra-industry production tend to share the same determinants; in particular they are higher as the two partner countries are more similar in relative factor endowments (physical and technological capital), in relative country size and are less geographically distant. Keywords: Intra-industry Trade, Intra-industry Foreign Direct Investment

Date: 2007
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