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Intra-Industry Trade in Latin America and the Caribbean

Thomas Fullerton (), W. Charles Sawyer and Richard Sprinkle ()
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Richard Sprinkle: Department of Economics and Finance, University of Texas at El Paso

No 201103, Working Papers from Texas Christian University, Department of Economics

Abstract: An increasingly important component of total world trade is intra-industry trade (IIT). The large volume of literature on IIT is reflective of this importance. However, this extensive literature has focused almost completely on explaining the causes of IIT. This focus has left a puzzling gap in the literature. Specifically, it is almost impossible to determine the level of IIT for a particular country or region. Further, there is almost no information on the level of IIT at the industry level either globally or for a region or country. In this paper we provide estimates of IIT for the world and for the countries of the Western Hemisphere. Further, we provide estimates of IIT for ten different SITC product categories on the same basis. The results should allow researchers to get a better picture of the extent of IIT in Latin America and the Caribbean both by country and by industry.

Pages: 40 pages
Date: 2011-01
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http://www.econ.tcu.edu/RePEc/tcu/wpaper/wp11-03.pdf First version, 2011 (application/pdf)

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