Intra-Industry Trade of Transition Countries: Trends and Determinants

27 Pages Posted: 27 Aug 2004

See all articles by Yener Kandogan

Yener Kandogan

University of Michigan at Flint - School of Management

Date Written: May 2003

Abstract

This paper analyzes trends in different components of trade of transition countries. To explain the cross-country differences, the paper points out the important distinction between the determinants of inter-industry trade and intra-industry trade (IIT), and horizontal and vertical IIT. Using varieties of gravity models, it is shown that variables from Increasing Returns Trade Theory, such as scale economies, similarity of income levels, and number of varieties produced play important roles in IIT, especially in horizontal IIT, whereas factors such as comparative advantage, dissimilarity in income levels, and having more developed trade partners of Heckscher-Ohlin Trade Theory are crucial in determining inter-industry trade and vertical IIT to a lesser degree.

Keywords: Vertical and horizontal intra-industry trade, transition countries, gravity models

JEL Classification: F14, P2

Suggested Citation

Kandogan, Yener, Intra-Industry Trade of Transition Countries: Trends and Determinants (May 2003). Available at SSRN: https://ssrn.com/abstract=582461 or http://dx.doi.org/10.2139/ssrn.582461

Yener Kandogan (Contact Author)

University of Michigan at Flint - School of Management ( email )

303 E. Kearsley Street
Flint, MI 48502
United States
810-237-6675 (Phone)
810-762-3282 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
215
Abstract Views
1,476
rank
163,428
PlumX Metrics