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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Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Intra-industry trade
T2 - a Krugman-Ricardo model and data
AU - Soo, Kwok Tong
N1 - 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
PY - 2016/4
Y1 - 2016/4
N2 - 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.
AB - 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.
KW - Increasing returns to scale
KW - Comparative advantage
KW - Intra-industry trade
U2 - 10.1111/ecca.12173
DO - 10.1111/ecca.12173
M3 - Journal article
VL - 83
SP - 338
EP - 355
JO - Economica
JF - Economica
SN - 0013-0427
IS - 330
ER -