The Nature and Significance of Intra-industry Trade - Economic and Financial Review, Fourth Quarter, 1999 - Dallas Fed
نویسنده
چکیده
2 International trade is traditionally thought to consist of each country exporting the goods most suited to its factor endowment, technology, and climate while importing the goods least suited for its national characteristics. Such trade is called inter-industry trade because countries export and import the products of different industries. But the top exports and imports of most industrial countries are actually similar items, such as passenger cars, electrical generators, or valves and transistors. Indeed, passenger cars are the number one export and import of Great Britain, Germany, and France. In the real world, international trade is largely trade within broad industrial classifications. Intra-industry trade occurs when a country exports and imports goods in the same industry. Intra-industry trade has been a hot topic among trade economists for several decades, but it has received scant attention among economists in general. This article gives an overview of intra-industry trade for the generalist. In the debate over NAFTA, for example, commentators focused much attention on America’s interindustry trade with Mexico but none on the far more important intra-industry trade. This article begins with a brief summary of Ricardian and factor endowment approaches to trade theory to highlight the contribution of intraindustry trade theory. Next, the article discusses the foundations of intra-industry trade theory and the significance of intra-industry trade for an economy. Finally, the U.S.–Mexico trade relationship is addressed as a pertinent example.
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