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Measures of Intra‐Industry Trade as Indicators of Factor Market Disruption *
Author(s) -
DIXON PETER B.,
ME JAYANT
Publication year - 1997
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1997.tb00996.x
Subject(s) - intra industry trade , economics , econometrics , measure (data warehouse) , market size , industrial organization , trade barrier , international trade , international economics , computer science , database
Concepts of intra‐industry trade (IIT) are often used to indicate the extent to which trade growth is accommodated without factor market disruption. The most common indicators are movements in Grubel‐Lloyd indexes. However, these are sometimes misleading. We develop two other indicators. The first involves changes in IIT. While this provides a measure of the contribution of ITT growth to trade growth, it can over‐estimate the contribution of non‐disruptive trade growth. This problem is overcome by our second indicator, the contribution of dynamic intra‐industry trade or matched changes in trade. All three indicators are illustrated with Australian manufacturing data.