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

See all articles by Manuel Heredia Cabral

Manuel Heredia Cabral

University of Minho

Rod Falvey

Bond University - Department of Economics

Chris Milner

University of Nottingham - School of Economics

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

Cabral, Manuel Heredia and Falvey, Rod and Milner, Chris, The Skill Content of Inter- and Intra-Industry Trade: Evidence for the Uk (February 2006). University of Nottingham Research Paper No. 2006/01. Available at SSRN: https://ssrn.com/abstract=885921 or http://dx.doi.org/10.2139/ssrn.885921

Manuel Heredia Cabral (Contact Author)

University of Minho ( email )

Braga, 4700
Portugal

Rod Falvey

Bond University - Department of Economics ( email )

Bond University - Department of Economics
Gold Coast, Queensland 4229
Australia

Chris Milner

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
83
Abstract Views
683
rank
305,194
PlumX Metrics