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Industrial Structure and Australia– UK Intra‐Industry Trade
Author(s) -
ME JAYANT,
GREENAWAY DAVID,
MILNER CHRIS
Publication year - 1999
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.1475-4932.1999.tb02430.x
Subject(s) - intra industry trade , robustness (evolution) , context (archaeology) , economics , industrial organization , international trade , international economics , business , economic geography , trade barrier , geography , chemistry , archaeology , gene , biochemistry
This paper tests industry‐specific hypotheses of the determinants of intra‐industry trade in the context of Australia‐UK trade. In doing so it separates intra‐industry trade (ITT) into ITT in horizontally differentiated products and ITT in vertically differentiated products. It finds that the latter is the dominant former of ITT. Further the paper investigates the robustness of empirical results on testing industry‐specific hypotheses to the choice of national (UK or Australian) industrial structure characteristics. The assumption of uniform industrial structures across countries adopted in other studies is shown not to be justified.