Abstract
This paper provides an empirical analysis of the determinants of intraindustry trade. We demonstrate that two-way trade flows occur where conditions are favorable to international specialization consistent with the Stigler-Williamson analysis of the division of labor. The results are inconsistent with the prevailing product differentiationcum-scale economies model of intraindustry trade. In addition, we show that intraindustry trade has a significant impact on protectionist pressures. Exports of closely related products have the effect of mitigating the tariff-raising effects that imports would otherwise exert.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
