Equivalence between Increasing Returns and Comparative Advantage as the Determinants of Intra-industry Trade: An Industry Analysis for Korea

East Asian Economic Review

卷:22

Honggue Lee¹ 

[1] Konkuk University;

关键词: Grubel-Lloyd Index;    Increasing Returns;    Comparative Advantage;    Intra-industry Trade;    Trade Costs;    Export Margins;    Two-part Model;   

DOI  :  10.11644/KIEP.EAER.2018.22.1.339

来源: DOAJ

【 摘 要 】

A two-part model is estimated to see if increasing returns and comparative advantage are empirically equivalent in explaining intra-industry trade. The model has separate mechanisms for determining the occurrence and the extent of intra-industry trade. Estimation is based on an augmented Grubel-Lloyd index derived from the data set on SITC 7 goods at the 3-digit SITC (Revision 4) for country pairs in which Korea is fixed as a source country. Estimation results show that both increasing returns and comparative advantage can explain the occurrence and the extent of intra-industry trade.

【 授权许可】

Unknown