On Various Types of Trade

Patrizia Tiberi Vipraio and Marco Giansoldati

Eastern European Economics, 2010, vol. 48, issue 3, 52-67

Abstract: Recent evidence on international fragmentation confirms that intraindustry and intrafirm trade may take place simultaneously, especially for parts and components. This bears important consequences, both for theory and practice. To help clarify these matters, we first critically review the most relevant scholarly contributions; then we estimate a panel regression model to test for fragmentation between the province of Udine (Italy) and five Central Eastern European countries, focusing on the furniture industry. Results show that imports of finished products mainly depend on lagged exports of furniture, meaning that the selected countries are definitely engaged in downstream operations.

Date: 2010
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