Intra-industry trade and revealed comparative advantage : an inverted-U relationship
This paper investigates the relationship between all types of intra-industry trade (IIT) and comparative advantage. The paper finds strong evidence of an inverted-U relationship.The results also suggest that relative autarky costs is a common determinant for any type of IIT, which contradicts the pr...
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| Format: | workingPaper |
| Language: | eng |
| Published: |
2010
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| Online Access: | http://hdl.handle.net/10400.5/2328 |
| Country: | Portugal |
| Oai: | oai:www.repository.utl.pt:10400.5/2328 |
| Summary: | This paper investigates the relationship between all types of intra-industry trade (IIT) and comparative advantage. The paper finds strong evidence of an inverted-U relationship.The results also suggest that relative autarky costs is a common determinant for any type of IIT, which contradicts the prediction made by theory for separating the determinants of horizontal and vertical IIT. |
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