Abstract
Does North-South Horizontal Intra-Industry Trade Really Exist? An Analysis of the Toy Industry. — In a combination of a case study approach and econometric analysis, bilateral intra-industry trade between high income countries and low income countries in the toy industry is investigated. In a number of products there is important bilateral intra-industry trade between both groups of countries. Econometric analysis in which a number of the explanatory variables used were quantified on the basis of the information supplied by the industry-spokesmen yields results which strongly support the view that the bilateral IIT between the high income countries and the low income countries in the toy industry is determined significantly by horizontal product differentiation and economies of scale.
Zusammenfassung
Gibt es wirklich einen horizontalen intraindustriellen Handel zwischen Nord und Süd? Eine Untersuchung der Spielwarenindustrie. — In einer Kombination von Fallstudie und ökonometrischer Analyse wird der bilaterale intraindustrielle Handel mit Spielzeug zwischen Ländern mit hohem und Ländern mit niedrigem Einkommen untersucht. Für eine Anzahl von Produkten gibt es einen bedeutenden Handel zwischen beiden Ländergruppen. Eine ökonometrische Analyse, in welcher einige der benutzten erklärenden Variablen auf der Grundlage von Informationen, die von Industriesprechern zur Verfügung gestellt wurden, quantifiziert worden sind, liefert Ergebnisse, die die These, daß der bilaterale intraindustrielle Handel zwischen Ländern mit hohem und Ländern mit niedrigem Einkommen auf dem Spielwarensektor signifikant durch horizontale Produktdifferenzierung und Skalenerträge bestimmt wird, stark stützen.
Similar content being viewed by others
References
Balassa, B., and L. Bauwens (1988). Changing Trade Patterns in Manufactured Goods: An Econometric Investigation. Amsterdam: North-Holland.
Baldwin, R. E. (1979). Determinants of Trade and Foreign Direct Investment: Further Evidence.Review of Economics and Statistics, Vol. 61, pp. 40–48.
Ballance, R. H., H. Forstner, and W.C. Sawyer (1992). An Empirical Examination of the Role of Vertical Product Differentiation in North-South Trade.Weltwirtschaftliches Archiv, Vol. 128, pp. 330–338.
Bergstrand, J. (1983). Measurement and Determinants of Intra-Industry International Trade. In:P. K. M. Tharakan (ed.),Intra-Industry Trade: Empirical and Methodological Aspects. Amsterdam: North-Holland, pp. 201–253.
Bouckaert, T. (1991). Le Business du Jouet.La Libre Entreprise, 7 December 1991, p. 10.
Bourguignon, F., and C. Morrisson (1990). Income Distribution, Development and Foreign Trade — A Cross-Sectional Analysis.European Economic Review, Vol. 34, pp. 1113–1132.
Commission of the European Communities (1993).Panorama of the EC Industry. Luxemburg.
Deardorff, A. V. (1979). Weak Links in the Chain of Comparative Advantage.Journal of nternational Economics, Vol. 19, pp. 197–209.
Dixit, A. K., and V. Norman (1980).Theory of International Trade: A Dual General Equilibrium Approach.Cambridge: Cambridge University Press.
Falvey, R.E. (1981). Commercial Policy and Intra-Industry Trade.Journal of International Economics, Vol. 19, pp. 495–511.
Falvey, R. E., and H. Kierzkowski (1987). Product Quality, Intra-Industry Trade and (Im)perfect Competition. In: H. Kierzkowski (ed.),Protection and Competition in International Trade. Essays in Honor of W. M. Corden Oxford: Basil Blackwell, pp. 143–161.
Flam, H., and E. Helpman (1987). Vertical Product Differentiation and North-South Trade.American Economic Review, Vol. 77, pp. 810–822.
GATT (1993). Trade Policy Review: European Communities. Geneva.
Greenaway, D., and C. Milner(1986).The Economics of Intra-Industry Trade.Oxford: Basil Blackwell.
Greenaway, D., and P. K. M. Tharakan (1986).Imperfect Competition and International Trade. Policy Aspects of Intra-Industry Trade. Brighton: Wheatsheaf Books.
Grubel, H.G., and P.J. Lloyd (1975). Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products. London: MacMillan Press Ltd.
Helpman, E. (1981). International Trade in the Presence of Product Differentiation, Economies of Scale and Monopolistic Competition: A Chamberlin-Heckscher-Ohlin Approach.Journal of International Economics, Vol. 11, pp. 305–340.
Huang, D.S. (1970). Regression and Econometric Methods. New York: Wiley. 104
Krueger, A.O. (1977).Growth Distortions and Patterns of Trade Among Many Countries. Princeton Studies in International Finance, No. 40.
Krugman, P.R. (1979). Increasing Returns, Monopolistic Competition, and International Trade.Journal of International Economics, Vol. 9, pp. 469–480.
Krugman, P. R. (1980). Scale Economies, Product Differentiation, and the Pattern of Trade.American Economic Review, Vol. 70, pp. 950–959.
Lancaster, K. (1980). Intra-Industry Trade under Perfect Monopolistic Competition.Journal of International Economics, Vol. 10, pp. 151–170.
Lecaillon, J., et al. (1984).Income Distribution and Economic Development. An Analytical Survey. Geneva.
Maddala, G.S. (1990). Limited-Dependent and Qualitative Variables in Econometrics. Cambridge: Cambridge University Press.
McAleese, D. et al. (1993). Africa and the EC after 1992. World Bank, Working Paper, Washington, D.C.
Paukert, F. (1973). La répartition du revenu à différents niveau de développement: quelques aspects concrets.Revue Internationale du Travail, Vol. Aug.–Sept. 1973, pp. 103–134.
Tharakan, P.K.M. (1986). The Intra-Industry Trade of Benelux with the Developing World.Weltwirtschaftliches Archiv, Vol. 122, pp. 131–149.
— (1989). Bilateral Intra-Industry Trade between Countries with Different Factor Endowment Patterns. In: P.K.M. Tharakan, J. Kol (eds.),Intra-Industry Trade, Theory, Evidence and Extensions, London: MacMillan Press Ltd., pp. 69–91.
UNCTAD (1988).Handbook of International Trade and Development Statistics. New York.
-(1989).Handbook of International Trade and Development Statistics. New York.
-(1985).Operation and Effects of Generalized Systems of Preferences. New York.
UN (1993).Trade Analysis and Information System. Geneva.
World Bank (1989).World Development Report. Oxford.
Yungho, Y. (1979). Appendix to R. E. Baldwin (1979).