Industries are economically linked through customer-supplier trade flows. We show theoretically and empirically that industry shocks propagating along this inter-sectoral trade network can feed back to the originating industry, causing an “echo” – intermediate-term autocorrelation in returns. Adopting techniques from graph theory, we find that the strength of the trade network feedback is a cru...

This chapter reviews the new approach to international trade based on firm heterogeneity in differentiated product markets. This approach explains a variety of features exhibited in disaggregated trade data, including the higher productivity of exporters relative to non-exporters, within-industry reallocations of resources following trade liberalization, and patterns of trade participation acro...

Based on an exploratory discussion, the aim of this article is to investigate whether there is evidence of regressive specialization in the foreign trade pattern of the Brazilian pharmaceutical industry since trade liberalization in the 1990s. A descriptive statistical analysis drew on data for foreign trade in pharmaceutical and organic chemical products, available in the Aliceweb system of th...

This paper examines the extents and determinants of intra-industry textile and clothing trade for the OECD countries. Trade overlap is used as the measurement of intra-industry trade (IIT). The general trend of intra-OECD trade and the extents of IIT for textile and clothing trade in year 2000 were examined. Hypotheses relating to 5 country-specific variables tested showed strong significance r...

This paper investigates the determinants of Spanish vertical intra-industry trade with a large sample of countries. We empirically test the comparative advantage explanation. To this aim, we build physical, human and technological capital stocks. On average, that is using OLS techniques, differences in endowments are a limitation for vertical intra-industry trade. Using quantile regressions tec...

Empirical intra-industry trade has a history that began in the mid-1960s. As with most empirical exercises, it has been wrought with criticism and defenses that have molded the work that is done on intra-industry trade today. This paper brings together the various measures and econometric studies on intra-industry trade. A complete review of the literature is beyond the scope of this paper, but...

We re-examine the relationship between intra-industry trade and labour reallocation, using individual-level data on manufacturing worker moves in the United Kingdom. The contribution of this analysis is twofold. First, we estimate the impact of intra-industry trade on worker moves between occupations as well as between industries. Second, we run individual-level regressions that allow us to con...