Preprint

Horizontal and Vertical Differentiation: Approaching Endogenous Measurement in Intra-industry Trade

Studying intra-industry trade involves theoretical explanations and empirical methods to measure the phenomenon. Indicators have been developed to measure the intensity of intra-industry trade, leading to theoretical models explaining its determinants. It is essential to distinguish between horizontal and vertical differentiation in empirical analyses. The determinants and consequences of intra-industry trade depend on whether the traded products differ in quality. A method for distinguishing between vertical and horizontal differentiation involves comparing exports' unit value to imports for each industry's intra-industry trade. This approach has limitations, leading to the need for an alternative method.

Language
Englisch

Classification
Wirtschaft
Trade: General
Neoclassical Models of Trade
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
Subject
Intra-industry trade
Vertical intra-industry trade
Horizontal intra-industry trade
Value Added

Event
Geistige Schöpfung
(who)
Dutta, Sourish
Event
Veröffentlichung
(who)
Cambridge Open Engage
(where)
Cambridge
(when)
2023

DOI
doi:10.33774/coe-2023-mmlq4
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Preprint

Associated

  • Dutta, Sourish
  • Cambridge Open Engage

Time of origin

  • 2023

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