Autor(es):
Cabral, Manuel de Herédia 
; Falvey, Rod E. ; Milner, Chris R.
Data: 2007
Identificador Persistente: http://hdl.handle.net/1822/7857
Origem: RepositóriUM - Universidade do Minho
Detalhes do Documento
Vertical intra-industry trade and differences in endowments : revisiting the em...
Descrição
This paper investigates the relationship between differences in endowments and different types of trade, in particular vertical intra-industry trade (VIIT). We build a general equilibrium framework based on a hybrid of the Chamberlain-Heckscher-Ohlin and the specific factors models that generates predictions about how the shares of different types of intra- and interindustry or net trade flows change with differences in endowments. We also present some empirical evidence for European Union (EU) trade with 51 major trading partners. The econometric models of the determinants of the different types of trade confirm the theoretical predictions, namely that the effect of cross country differences in the endowments of trading partners on the share of vertical IIT in total bilateral trade differs from their effect on both horizontal IIT and net trade. The share of horizontal IIT (net trade) decreases (increases) for all increases in absolute endowment increases, but the share of vertical IIT can both increase and decrease with increases in endowment differences.
This paper investigates the relationship between differences in endowments and different types of trade, in particular vertical intra-industry trade (VIIT). We build a general equilibrium framework based on a hybrid of the Chamberlain-Heckscher-Ohlin and the specific factors models that generates predictions about how the shares of different types of intra- and interindustry or net trade flows change with differences in endowments. We also present some empirical evidence for European Union (EU) trade with 51 major trading partners. The econometric models of the determinants of the different types of trade confirm the theoretical predictions, namely that the effect of cross country differences in the endowments of trading partners on the share of vertical IIT in total bilateral trade differs from their effect on both horizontal IIT and net trade. The share of horizontal IIT (net trade) decreases (increases) for all increases in absolute endowment increases, but the share of vertical IIT can both increase and decrease with increases in endowment differences.
Tipo de Documento
Documento de conferência
Idioma Inglês
Idioma Inglês
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