Trade overlap and trade pattern indices of intra-industry trade: Theoretical distinctions versus empirical similarities

Jacques Silber and Udo F. Broll

No 107, Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy"

Abstract: In a recent survey of intra-industry trade indices Kol and Mennes (1986) suggested to make a basic distinction between the study of matching trade flows and that of the similiarity oftrade patterns. The present paper shows that in both cases measures of intra-industry trade may be expressed either as distances or as equality indices, and derives the corresponding families of intra-industry indices. An empirical section indicates however that despite these theoretical distinctions, most of the intra-industry trade indices are highly correlated.

Date: 1990
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