 A Systematic Decomposition of World Trade into Horizontal and Vertical IITLionel Fontagné, Michael Freudenberg () and Guillaume Gaulier Post-Print from HAL Abstract: We provide a systematic decomposition of world trade using harmonized bilateral flows at the most available detail (some 5,000 product categories), into three trade types: inter-industry, intra-industry in horizontally and in vertically differentiated products. The analysis is diachronic and considers country pairs such as France-Germany, United States-China, Malaysia-Singapore, or India-Nigeria. We show that the increase in IIT at the world level is due to two-way trade of vertically differentiated products. We find France and Germany having the highest share of IIT in their bilateral trade among all country pairs in the world. In value terms, the most important bilateral IIT is between the United States and Canada. Recently, specialization according to the classical theories of international trade (inter-industry trade), has recovered, due to the increasing participation of emerging economies in world trade. Keywords: Intra-industry trade; international trade (search for similar items in EconPapers) Published in Review of World Economics, 2006, 142 (3), pp.459-475. ⟨10.1007/s10290-006-0076-6⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00270504 DOI: 10.1007/s10290-006-0076-6 Access Statistics for this paper More papers in Post-Print from HAL |
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