TWO-WAY INTERNATIONAL TRADE AND PRODUCTION IN ITALY: A COUNTRY/INDUSTRY SPECIFIC ANALYSIS

Filippo Reganati () and Rosanna Pittiglio ()

Quaderni DSEMS from Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia

Abstract: Economic interactions among high-income developed countries are characterized by high degrees of both intra-industry trade and intra-industry affiliate production and sales. Similar high-income countries both heavily trade with and invest into each other. This paper examines the determinants of Italian intra-industry trade and intra-industry production with most European trading partners using a dataset where variables are different not only between countries but also between sectors of the same country. Using different econometric methods, the results obtained suggest that intra-industry trade and intra-industry production tend to share the same determinants; in particular they are higher as the two partner countries are more similar in relative factor endowments (physical and technological capital), in relative country size and are less geographically distant.

Keywords: intra-industry trade; intra-industry foreign direct investment. (search for similar items in EconPapers)
JEL-codes: F13 F23 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2007-10
New Economics Papers: this item is included in nep-int
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Related works:
Journal Article: Two-way international trade and production in Italy: a country/industry specific analysis (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ufg:qdsems:19-2007

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