Effects of the Expansion of Regional Integration Arrangements: An Intra-Industry Trade Model

2001 ◽  
Author(s):  
Soamiely Andriamananjara
Keyword(s):  
Regional Integration ◽  
Industry Trade ◽  
Trade Model

An intra-industry trade model in a vertical differentiation framework

2013 ◽  
Vol 52 (1) ◽  
pp. 201-226 ◽  
Author(s):  
E. Ayşen Hiç Gencer ◽  
William P. Anderson
Keyword(s):  
Vertical Differentiation ◽  
Industry Trade ◽  
Trade Model

scholarly journals Comparative Advantage and Skill-Specific Unemployment

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Mario Larch ◽  
Wolfgang Lechthaler
Keyword(s):  
Heterogeneous Firms ◽  
Unskilled Worker ◽  
Skilled Workers ◽  
Skilled Worker ◽  
Industry Trade ◽  
Trade Model ◽  
Unskilled Workers ◽  
Endogenous Selection ◽  
Two Sectors ◽  
Selection Of

Abstract We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to identify three different channels through which trade liberalization can affect unemployment: specialization, changes in productivity, and mobility. These three channels may work in opposite directions and their relative importance depends on the type of trade (intra-industry trade vs. inter-industry trade) and the skill-class of a worker. We show that the gains from trade are distributed very unequally. When a skilled worker abundant country opens up to trade with a country that is unskilled worker abundant, the biggest losers are the skilled workers in the import sector in the skill abundant country. However, average unemployment among skilled workers goes down, while average unemployment among unskilled workers goes up.

REGIONAL INTEGRATION AND INTRA-INDUSTRY TRADE IN MANUFACTURES BETWEEN THAILAND AND OTHER APEC COUNTRIES

2009 ◽  
Vol 54 (01) ◽  
pp. 135-148 ◽  
Author(s):  
SUJINDA CHEMSRIPONG ◽  
FRANK W. AGBOLA ◽  
JULIE E. LEE
Keyword(s):  
Regional Integration ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Standard International Trade Classification ◽  
Asian Countries ◽  
Trade Imbalance ◽  
Cross Sectional ◽  
Industry Trade ◽  
The Impact

This article investigates the impact of regional integration on intra-industry trade in manufactures between Thailand and other APEC countries. The study uses pooled cross-sectional and time-series data spanning the period 1980–1999 at a 3-digit Standard International Trade Classification (SITC) level. After accounting for trade imbalance and following Thailand's entry into APEC, intra-industry trade in manufactures between Thailand and countries in Oceania and America decreased, while trade with other Asian countries grew marginally. Results indicate that, in the post APEC era, trade openness stimulated increased intra-industry trade levels with countries in Northeast and Southeast Asia, but decreased trade with countries in America.

scholarly journals Tariffs and Firm-Level Heterogeneous Fixed Export Costs

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Jan Guldager Jørgensen ◽  
Philipp J. H. Schröder
Keyword(s):  
Consumer Welfare ◽  
Trade Barriers ◽  
Firm Level ◽  
Laffer Curve ◽  
Domestic Firms ◽  
Industry Trade ◽  
Tariff Revenue ◽  
Trade Model ◽  
Curve Effect ◽  
Number Of Firms

AbstractThis paper presents a two-country intra-industry trade model with bilateral ad valorem tariffs and fixed export costs that are heterogeneous across firms. In this model not all firms will choose to export. We examine the effects of reciprocal changes in the tariff and the fixed export barrier on the number of firms, firm profits, tariff revenue and consumer welfare. We show that both types of trade barriers reduce (increase) the number of exporting (pure domestic) firms. However, the sum of available home and foreign varieties increases for small tariffs. Firm profits are falling in both tariff and fixed export cost barriers. Tariff revenue falls when fixed export costs increase whereas we have a Laffer curve effect for the tariff. Welfare falls when fixed export costs increase and increases for small tariffs and falls for large tariffs, i.e. there exists a welfare maximizing tariff.

scholarly journals Intra-industry trade with pollution concerned cooperation

2016 ◽  
Vol 7 (1) ◽  
pp. 9-15
Author(s):  
M. Özgür Kayalica ◽  
Gülgün Kayakutlu
Keyword(s):  
Production Process ◽  
Crucial Role ◽  
Critical Level ◽  
Home Country ◽  
Pollution Abatement ◽  
Environmental Externalities ◽  
Individual Country ◽  
Industry Trade ◽  
Trade Model ◽  
Abatement Technology

The authors develop a two-country, two-firm intra-industry trade model. Each firm is operating at its home country and producing homogeneous goods to be consumed in both countries. Governments apply quantity restriction on pollution. Every individual country is affected from the pollution generated during the production process of its own firm. The model shows that efficiency in pollution abatement technology plays a crucial role on welfare maximizing effort of governments. A critical level of pollution abatement technology determines the preponderance of environmental misgivings in welfare maximizing behavior. The more efficient the firms in pollution abatement technology, the less stricter the governments will be in their policies to reduce negative environmental externalities

A Two-factor Model of Intra-industry Trade: A Demonstration of Robustness of Krugman’s (1980) Model

2019 ◽  
Vol 7 (5) ◽  
pp. 422-436
Author(s):  
Lianjie Duan
Keyword(s):  
Economies Of Scale ◽  
Factor Model ◽  
Returns To Scale ◽  
Analytic Solutions ◽  
Product Diversification ◽  
Equilibrium Analysis ◽  
Industry Trade ◽  
Trade Model ◽  
Entry Cost ◽  
Two Factors

Abstract Using Cobb-Douglas production function with increasing returns to scale, this paper presents an intra-industry trade model which contains two factors, capital and labor. Thus, this paper extends Krugman’s (1980) single-factor model to a two-factor model with the entry cost. Firstly, an equilibrium analysis of closed economy is carried out. After the condition of existence and uniqueness of equilibrium is obtained, the analytic solutions are given. Secondly, it provides an analysis on trade effects. The results show that, under setup of symmetry among firms, the intra-industry trade can only enable consumers to benefit from product diversification without making firms achieve economies of scale. Obviously, this conclusion is consistent with Krugman (1980), which thus indicates robustness of Krugman’s (1980) model.

scholarly journals Strategic Trade: Weighted Payoff Functions And Diverse Trade Patterns

2011 ◽  
Vol 2 (8) ◽  
Author(s):  
Gregory G. Green
Keyword(s):  
Nash Equilibria ◽  
Necessary Conditions ◽  
Payoff Function ◽  
Policy Choice ◽  
Trade Patterns ◽  
Industry Trade ◽  
Trade Model ◽  
Strategic Trade ◽  
Payoff Functions ◽  
Foreign Governments

This paper extends the basic intra-industry trade model, Brander and Spencer (1985), in two directions. A weight is included in the foreign governments payoff function, similar to Collie (1997), which alters the traditional policy choice when this weight is different than one. We also require each firms output choice be nonnegative. These constraints and the weighted payoff function lead to several Nash equilibria that have not been analyzed in the intra-industry trade literature. Our analysis helps explain why industries satisfying the necessary conditions for intra-industry trade patterns may not actually display such trade patterns. [F12, F13, C72]

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