Preliminary communication

UNITED STATES’ INTRA-INDUSTRY TRADE

Nuno Carlos Leitao

Abstract

The main objective of this manuscript is to explain the horizontal and vertical intra-industry
trade of United States with trade partner of NAFTA, European Union and ASEAN. Identify
the determinants of intra-industry trade, horizontal and vertical. Using a panel data
approach, the results show a negative correlation between endowments and intra-industry
trade. These results indicate that intra-industry trade occurs more frequently among
countries that are similar in terms of factor endowments. The findings support the theory that,
in general, there is no positive statistical association between HIIT and HO variables. Our
results also confirm the hypothesis that trade increases if the transportation costs decrease.

Keywords

Horizontal Intra-industry trade; Vertical; United States; Comparative Advantages

Hrčak ID:

70511

URI

https://hrcak.srce.hr/70511

Publication date:

1.6.2011.

Article data in other languages: croatian

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