Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316535 
Authors: 
Year of Publication: 
2018
Citation: 
[Journal:] East Asian Economic Review (EAER) [ISSN:] 2508-1667 [Volume:] 22 [Issue:] 1 [Year:] 2018 [Pages:] 75-114
Publisher: 
Korea Institute for International Economic Policy (KIEP), Sejong-si
Abstract: 
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.
Subjects: 
Grubel-Lloyd Index
Increasing Returns
Comparative Advantage
Intra-industry Trade
Trade Costs
Export Margins
Two-part Model
JEL: 
F11
F12
F14
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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