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  • KrugmanRicardo Eca Final

    Rights statement: This is the peer reviewed version of the following article: Soo, K. T. (2016), Intra-industry trade: A Krugman–Ricardo Model and Data. Economica, 83: 338–355. doi: 10.1111/ecca.12173 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/ecca.12173/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving

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    Available under license: CC BY: Creative Commons Attribution 4.0 International License

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Intra-industry trade: a Krugman-Ricardo model and data

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published
<mark>Journal publication date</mark>04/2016
<mark>Journal</mark>Economica
Issue number330
Volume83
Number of pages18
Pages (from-to)338-355
Publication StatusPublished
Early online date14/12/15
<mark>Original language</mark>English

Abstract

This paper develops a model of international trade with a continuum of countries and sectors, which combines Ricardian comparative advantage and increasing returns to scale. Trade consists of both inter- and intra-industry trade. The model predicts that the trade-weighted Grubel-Lloyd index of intra-industry trade is positively related to the number of exported sectors, and is negatively related to the number of imported sectors. Empirical evidence from a panel of countries using the UN Comtrade database supports these predictions, and the model fits the data better for non-OECD than for OECD countries.

Bibliographic note

This is the peer reviewed version of the following article:Soo, K. T. (2016), Intra-industry trade: A Krugman–Ricardo Model and Data. Economica, 83: 338–355. doi: 10.1111/ecca.12173 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/ecca.12173/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving

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