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UK Intra‐industry Trade with the EU North and South
Author(s) -
Greenaway David,
Milner Chris,
Elliott Robert J. R.
Publication year - 1999
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.00134
Subject(s) - factor endowment , intra industry trade , economics , international economics , context (archaeology) , international trade , robustness (evolution) , horizontal and vertical , endowment , economic geography , economic integration , comparative advantage , geography , biochemistry , chemistry , philosophy , archaeology , geodesy , epistemology , gene
This paper tests the traditional country and industry hypotheses of intra‐industry trade (IIT) in vertically and horizontally differentiated products in the context of the UK’s bilateral trade with EU countries. It distinguishes empirically between IIT in vertically and horizontally differential goods, between trade with EU ‘North’ and ‘South’ and between the effects of using GDP proxies and direct measures of national factor endowment differences. The paper shows that the robustness of the results of earlier multi‐country studies are open to challenge, that the separation of IIT into vertical and horizontal IIT offers an important innovation to the empirical work in this area and that further development of large numbers models of IIT in quality differentiated goods is required.