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Economic Geography, Comparative Advantage and Trade within Industries: Evidence from the OECD

Sir David Greenaway () and Johan Torstensson
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Johan Torstensson: Lund University, FIEF, Stockholm and CEPR, Postal: Lund University, FIEF, Stockholm and CEPR

Journal of Economic Integration, 2000, vol. 15, 260-280

Abstract: A large share of world trade, especially among the OECD countries, is twoway trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products with - in industries, whereas they import others. We examine this issue, by focusing on the shares of IIT that are vertical and horizontal and by examining price dis - persion. The regression results suggest that an abundant human capital endowment as well as a large domestic market increases the quality of OECD-countries’ manufacturing exports, thus of fering suppor t for comparative advantage models as well as newer geography models.

Keywords: Comparative advantage; Economic geography (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2000
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Related works:
Working Paper: Economic Geography, Comparative Advantage and Trade Within Industries: Evidence from the OECD (1998) Downloads
Working Paper: Economic Geography, Comparative Advantage and Trade within Industries: Evidence from the OECD (1997) Downloads
Working Paper: Economic Geography, Comparative Advantage and Trade Within Industries: Evidence from the OECD
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