Robert M. La Follette School of Public Affairs

A Consideration of Patterns of Intra-Industry Trade: Why Do Countries Export and Import More/Less in the Same Industry?

The author employs the widely used model of intra-industry trade and allows transport costs and price asymmetry across countries to examine whether and how the model can explain such positive correlations between a country's exports and imports in the same industry. The author's findings seem to imply that an alternative mechanism missed in the conventional model is needed to explain the pattern of intra-industry trade.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2013-009
  • Author(s): Isao Kamata