Intra-industry trade with Bertrand and Cournot oligopoly: The role of endogenous horizontal product differentiation [PDF]
Abstract This paper investigates the effect of endogenous horizontal product differentiation on trade patterns and the gains from trade under Bertrand and Cournot oligopoly. If trade occurs, Bertrand firms always differentiate their products more that Cournot firms. However, sufficiently high differentiation costs can prevent product differentiation.
James A Brander, Barbara J Spencer
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Intra-industrial Trade and Horizontal FDI: A Unified Model
2007 International Conference on Management Science and Engineering, 2007On the basis of previous research literature, this paper constructs a unified general equilibrium model of intra-industrial trade which can endogenize horizontal foreign direct investment (FDI) by introducing the horizontal multinational enterprises (MNEs) into the model of the new trade theory to illuminate the rationale for coexistence of intra ...
Su Zhen-dong, Liu Li
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Horizontal and Vertical Intra-Industry Trade of NAFTA and MERCOSUR: The Case of the Automobile Industryy [PDF]
The NAFTA and MERCOSUR agreements seem to have accelerated the regional integration process respectively within North and South of America. In the South in particular, MERCOSUR has led to trade liberalisation and deregulation, which has resulted in significant growth of its regional trade.
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Vertical and Horizontal Intra-Industry Trade: A Cross Industry Analysis for the United Kingdom
Economic Journal, 1995A large theoretical literature has emerged directed at explaining the presence of intra-industry trade (IIT). One of the distinctions which comes out of these models is that between horizontal IIT (where goods are differentiated by attributes) and vertical IIT (where goods are differentiated by quality). In this paper horizontal and vertical IIT in U.K.
David Greenaway +2 more
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Horizontal Intra-Industry Trade and the Growth of International Trade
2002The main question investigated in this chapter is whether a model of intra-industry trade with horizontal differentiation is able to explain the significant gap between the growth rates of trade and of output. We argue that it does, provided that the standard model of intra-industry trade (that is, the Dixit—Stiglitz—Krugman model) includes non-traded ...
Nicolas Schmitt, Zhihao Yu
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Horizontal and Vertical Intra-Industry Trade: The Case of Asean Trade in Manufactures
International Economic Journal, 2003For over two decades prior to the Asian Currency crisis of 1997, the economies of the ASEAN-5 underwent an impressive economic expansion while increasing their openness to trade. This paper examines the role of intra-industry trade (IIT) in intra-ASEAN trade.
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Horizontal and Vertical Intra‐industry Trade: An Empirical Test of the ‘Homogeneity Hypothesis’
The World Economy, 2012AbstractIn this paper, we study if and how country‐specific factors affect intra‐industry trade (IIT) when heterogeneity among sectors is allowed for. The paper is novel in that it is the first that addresses an issue raised by Greenaway et al. (Oxford Bulletin of Economics and Statistics, 1999, 61, 365).
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Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK
Weltwirtschaftliches Archiv, 1994Country-Specific Factors and the Pattern of Horizontal and Vertical Intra-Industry Trade in the UK. - A large number of empirical studies have investigated the relationship between country-specific factors and total intra-industry trade (IIT). One important shortcoming of this literature is that it ignores the distinction between horizontal and ...
David Greenaway +2 more
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U.S. Vertical and Horizontal Intra-Industry Trade Patterns with the Middle East
Journal of Interdisciplinary Economics, 2011The main objective of this paper is to examine the extent of the U.S. vertical and horizontal intra-industry trade patterns with the countries in the Middle Eastern region. To deepen our understanding of the development of trade and investment relations between the U.S. and the Middle Eastern countries, we consider both the commodity structure of trade
Aysar Philip Sussan +3 more
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Vertical and horizontal patterns of intra-industry trade between EU and candidate countries
2008The decomposition of intra-industry shares in trade between EU and candidate countries reveals predominantly vertical structures with decisively more quality advantages for the EU and less quality advantages for candidate countries. This paper offers an explanation for the increasing share of vertical intra-industry trade.
Segnana, Maria Luigia, H. Gabrisch
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