Controversies Concerning Intra-Industry Trade

Abstract

There have been a number of fairly vigorous controversies in the literature on intra-industry trade. This chapter examines three. The first two date back to the beginning of the debates about the nature of intraindustry trade: namely, the fundamental aggregation problem and the choice of measure. The latter includes the question of whether an adjustment should be made for the trade imbalance. There are other controversies (Greenaway and Torstensson, 1997, review developments in intra-industry trade analysis over the 1990s), but the two chosen are persistent and important. The third issue is the incorporation of intraindustry trade into analyses of the factor content of international trade. This is an important current issue that may become a new controversy. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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