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Intra-industry trade: measurements, determinants and growth: a study of Swedish foreign trade
Örebro University, Örebro University School of Business.ORCID iD: 0000-0003-2575-6114
1989 (English)Doctoral thesis, monograph (Other academic)
Abstract [en]

The conclusions are that a traditional factor proportions model seems neither theoretically nor empirically to explaing IIT. However, a relaxation of the assumption of homogeneous products in an industry gives rise to several implications for IIT. Industry characteristics such as an industry’s factor intensity and the degree of product differentiation play important roles. The more extreme an industry is with regard to factor intensity, i.e., if an industry is very capital or very labor intensive, the smaller IIT is in that industry. The more differentiated the products, the less the elasticity of substitution in demand between different products in an industry, the larger the IIT. In order to test the latter, a new measure of product differentiation closely related to the concept in the theoretical model is developed. Furthermore, similarity in relative factor endowments in the trading countries and transaction costs - tariffs and transport costs - influence IIT. The more similar the relative factor endowments, the larger the IIT. The less the transaction costs, the greater the IIT.

Place, publisher, year, edition, pages
Umeå, Sweden: Umeå University , 1989. , p. 156
Series
Umeå Economic Studies, ISSN 0348-1018 ; 205
Keywords [en]
Intra-industry trade, determinants, comparative costs, factor intensity, product differentiation, elasticity of substitution, economies of scale, quasi-homothetictastes, Sweden
National Category
Social Sciences Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-67808ISBN: 91-7174-432-0 (print)OAI: oai:DiVA.org:oru-67808DiVA, id: diva2:1231787
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Available from: 2018-09-04 Created: 2018-07-09 Last updated: 2018-09-04Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf