Determinants of United States’ Vertical and Horizontal Intra-Industry Trade

This paper investigates bilateral intra-industry trade between the United States and its major trading partners over the period 1995–2008. Intra-industry trade (IIT) is decomposed into horizontal (HIIT) and vertical (VIIT) components. HIIT dominates the total two-way trade of the United States andit...

Full description

Bibliographic Details
Main Authors: Thorpe, Michael, Leitao, Nuno
Format: Journal Article
Published: Walter de Gruyter GmbH 2013
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/41590
_version_ 1848756187161427968
author Thorpe, Michael
Leitao, Nuno
author_facet Thorpe, Michael
Leitao, Nuno
author_sort Thorpe, Michael
building Curtin Institutional Repository
collection Online Access
description This paper investigates bilateral intra-industry trade between the United States and its major trading partners over the period 1995–2008. Intra-industry trade (IIT) is decomposed into horizontal (HIIT) and vertical (VIIT) components. HIIT dominates the total two-way trade of the United States andits share relative to VIIT has been rising over time, particularly with neighbouring trade partners and with China. Using pooled panel data, country-level determinants of IIT, HIIT and VIIT are investigated. The results, overall, tend to conform with a priori expectations and provide empirical support for anumber of propositions suggested by theory. Findings indicate that the relative similarity of the economies of trading partners, their geographical proximity, FDI and overall market size are important influences on bilateral HIIT flows for the United States. VIIT, on the other hand, is found to be driven in large part by economic differences between partners as well as the market size and closenessof trading partners.
first_indexed 2025-11-14T09:08:12Z
format Journal Article
id curtin-20.500.11937-41590
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T09:08:12Z
publishDate 2013
publisher Walter de Gruyter GmbH
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-415902017-09-13T14:15:05Z Determinants of United States’ Vertical and Horizontal Intra-Industry Trade Thorpe, Michael Leitao, Nuno United States trade vertical intraindustry horizontal intra-industry trade intra-industry trade This paper investigates bilateral intra-industry trade between the United States and its major trading partners over the period 1995–2008. Intra-industry trade (IIT) is decomposed into horizontal (HIIT) and vertical (VIIT) components. HIIT dominates the total two-way trade of the United States andits share relative to VIIT has been rising over time, particularly with neighbouring trade partners and with China. Using pooled panel data, country-level determinants of IIT, HIIT and VIIT are investigated. The results, overall, tend to conform with a priori expectations and provide empirical support for anumber of propositions suggested by theory. Findings indicate that the relative similarity of the economies of trading partners, their geographical proximity, FDI and overall market size are important influences on bilateral HIIT flows for the United States. VIIT, on the other hand, is found to be driven in large part by economic differences between partners as well as the market size and closenessof trading partners. 2013 Journal Article http://hdl.handle.net/20.500.11937/41590 10.1515/gej-2013-0019 Walter de Gruyter GmbH fulltext
spellingShingle United States
trade
vertical intraindustry
horizontal intra-industry trade
intra-industry trade
Thorpe, Michael
Leitao, Nuno
Determinants of United States’ Vertical and Horizontal Intra-Industry Trade
title Determinants of United States’ Vertical and Horizontal Intra-Industry Trade
title_full Determinants of United States’ Vertical and Horizontal Intra-Industry Trade
title_fullStr Determinants of United States’ Vertical and Horizontal Intra-Industry Trade
title_full_unstemmed Determinants of United States’ Vertical and Horizontal Intra-Industry Trade
title_short Determinants of United States’ Vertical and Horizontal Intra-Industry Trade
title_sort determinants of united states’ vertical and horizontal intra-industry trade
topic United States
trade
vertical intraindustry
horizontal intra-industry trade
intra-industry trade
url http://hdl.handle.net/20.500.11937/41590