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| Author: | Nielsen, J. U.-M. Luthje, T. |
| Title: | Tests of the Empirical Classification of Horizontal and Vertical Intra-Industry Trade |
| Journal: | Weltwirtschaftliches Archiv
2002 : VOL. 138:4, p. 587-604 |
| Index terms: | TRADE INTRA-INDUSTRY TRADE EMPIRICAL RESEARCH ANALYTICAL REVIEW |
| Language: | eng |
| Abstract: | The Heckscher-Ohlin model was the theoretical foundation for the view of international trade. But the view of the world is no longer so simple and uncomplicated. Today more than 60 percent of trade among the OECD countries is characterized by intra- industry trade, i.e. two-way trade with both exports and imports of different varieties inside a differentiated product category. The authors' analysis is relevant in relation to both empirical traditions mentioned above, but is predominantly related to the Fontagne and Freudenberg analysis. First the authors look through methods used in the empirical intra-industry trade literature to separate trade in a vertical and a horizontal part, and then present the authors' data and formulate the questions to be tested. |
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