The Skill Content of Inter- and Intra-Industry Trade: Evidence for the Uk
University of Nottingham Research Paper No. 2006/01
29 Pages Posted: 28 Feb 2006
Date Written: February 2006
Abstract
In this paper we investigate the relative importance of net exchanges of skills embodied in intra-industry and inter-industry trade for the UK's trade with some middle income countries. We also separately measure the net exchanges of skills embodied in vertical and horizontal intra-industry trade. We find that there are substantial factor exchanges involved in intra-industry trade, implying that traditional factor content studies may have seriously underestimated the actual factor content of total trade flows. This means that the adjustment effects of intra-industry trade may be greater than is often presumed. We also find, in line with theory, that vertical IIT involves similar net exchanges of labour of different skills to that of inter-industry trade, while horizontal intra-industry trade involves much smaller net exchanges of skills.
Keywords: Factor Content, Intra-Industry Trade, Technology Differences
JEL Classification: F11, F14
Suggested Citation: Suggested Citation
Register to save articles to
your library
Recommended Papers
-
Technology, Factor Supplies and International Specialization: Estimating the Neoclassical Model
-
Do Endowments Predict the Location of Production? Evidence from National and International Data
-
One Size Fits All? Heckscher-Ohlin Specialization in Global Production
-
The Heckscher-Ohlin-Vanek Model of Trade: Why Does it Fail? When Does it Work?
By Donald R. Davis, David E. Weinstein, ...
-
Increasing Returns and All that: A View from Trade
By Werner Antweiler and Daniel Trefler
-
Estimation of Cross-Country Differences in Industry Production Functions
-
Specialization and the Volume of Trade: Do the Data Obey the Laws?
