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Vertical intra-industry trade and differences in endowments : revisiting the em...
Cabral, Manuel de Herédia; Falvey, Rod E.; Milner, Chris R.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 diffe...
The skill content of Inter- and intra-industry trade : evidence for the United ...
Cabral, Manuel de Herédia; Falvey, Rod E.; Milner, Chris R.In this paper we investigate the relative importance of net exchanges of skills embodied in intra-industry and inter-industry trade for the UK’s trade with some middle income countries. We also separately measure the net exchanges of skills embodied in vertical and horizontal intra-industry trade (IIT). We find that there are substantial factor exchanges involved in IIT, implying that traditional factor content...
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