Does intra-industry trade exist in the real world?

Teit Luthje

Applied Economics Letters, 2006, vol. 13, issue 13, 825-827

Abstract: If foreign trade is related to that part of a product category which includes foreign trade in quality varieties between countries with identical factor endowments, intra-industry trade makes up a far smaller share of total foreign trade than normally assumed. Thereby, the Heckscher Ohlin model is the essential incentive explaining foreign trade.

Date: 2006
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DOI: 10.1080/13504850500424991

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