Marginal Intra-Industry Trade: Towards a Measure of Non-Disruptive Trade Expansion

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Serval ID
serval:BIB_E4C41BAAC9F0
Type
A part of a book
Collection
Publications
Institution
Title
Marginal Intra-Industry Trade: Towards a Measure of Non-Disruptive Trade Expansion
Title of the book
Frontiers of Research in Intra-Industry Trade
Author(s)
Brülhart M.
Publisher
Palgrave Macmillan
ISBN
978-1-349-42948-6
978-0-230-28598-9
Publication state
Published
Issued date
2002
Editor
Grubel H., Lloyd P. J., Lee H.-H.
Pages
109-130
Language
english
Abstract
When Verdoorn (1960) found that the formation of a customs union among the Benelux countries had stimulated large, two-way trade flows of similar products, and Drèze (1961) discovered the same phenomenon in the fledgling six-nation EEC, economists took note for one main reason:adjustment costs. Instead of inter-sectoral specialization according to countries’ comparative advantage, the national economies seemed to preserve their broad industrial structures and to specialize predominantly at the intra-sectoral level. A ‘smooth adjustment hypothesis’ (SAH) soon became firmly rooted in economic thinking, according to which intra-industry trade (IIT) expansion generally entails lower adjustment costs than does inter-industry trade.
Create date
19/11/2007 10:51
Last modification date
20/08/2019 16:08
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