publication . Article . Other literature type . 2007

Intra-industry trade with multinational firms

Egger, H; Egger, P; Greenaway, D;
Open Access English
  • Published: 01 Jan 2007
  • Publisher: Elsevier
  • Country: Switzerland
Abstract
Recent developments, including the analysis of firm-level adjustment to falling trade costs, have contributed to a revival of interest in intra-industry trade (IIT). Most empirical work still relies on the standard Grubel–Lloyd measure. This however refers only to international trade, disregarding income flows stimulated by repatriated profits of multinational firms. Given the overwhelming importance of the latter, this is a major shortcoming. This paper provides a guide to measurement and estimation of the determinants of bilateral IIT shares from the perspective of new trade theory with multinational firms. We develop an analytically solvable general equilibri...
Subjects
free text keywords: Department of Economics, 330 Economics, Economics and Econometrics, Finance, New trade theory, Grubel–Lloyd index, Profit (economics), Trade barrier, General equilibrium theory, International economics, Economics, Microeconomics, Multinational corporation, Variables, media_common.quotation_subject, media_common, Intra-industry trade
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