English, Article, Journal or magazine article edition: Disentangling Horizontal and Vertical Intra-Industry Trade Lionel Fontagne; Michael Freudenberg; Guillaume Gaulier

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Bookmark: http://trove.nla.gov.au/version/159763
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Disentangling Horizontal and Vertical Intra-Industry Trade
Author
  • Lionel Fontagne
  • Michael Freudenberg
  • Guillaume Gaulier
Physical Description
  • preprint
Notes
  • Intra-Industry Trade has been repeatedly attested since the 1960s and justified on the grounds of the new approaches to international trade based on imperfect competition and differentiated products. Up to now however, scholars were relying on partial assessments of this phenomenon. We provide here a systematic decomposition of world trade using harmonised bilateral flows for some 5,000 products, into three trade types: inter-industry, intra-industry in horizontally versus vertically differentiated products, over the period 1989-2002. We show that the increase in IIT at the world level is due to two-way trade of vertically differentiated products. However inter-industry trade has recently recovered, due to the increasing participation of emerging economies in world trade.
  • Intra-Industry Trade; International Trade
  • RePEc:cii:cepidt:2005-10
Language
  • English
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