Intra-Industry Trade and Revealed Comparative Advantage: An Inverted-URelationship

• Autor(es): Faustino, Horácio C.
• Data: 2008
• Identificador Persistente: http://hdl.handle.net/10400.5/2328
• Origem: Repositório da UTL
• Assunto(s): intra-industry trade; horizontal intra-industry trade; vertical intra-industry trade; comparative advantage
• Tipo de Documento: Outro
• Idioma: Inglês

Descrição

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.