On the measurement of product quality in intra-industry trade

Abdul Karim, Mohamed Azhar and Elliott, Robert J. R. (2006) On the measurement of product quality in intra-industry trade. Review of World Economics, 142 (3). pp. 476-495. ISSN 1610-2878

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Official URL: http://dx.doi.org/10.1007/s10290-006-0077-5

Abstract

The world has witnessed a dramatic increase in trade over the last forty years. Much of this growth in trade is intra-industry in nature. A relatively recent development in the intra-industry trade (IIT) literature is the measurement of the simultaneous import and export of quality-differentiated products, commonly known as vertical and horizontal IIT. In this paper we compare the Greenaway, Hine and Milner (1994) and Fontagné and Freudenberg (1997) approaches to disentangling vertical and horizontal intra-industry trade and examine some of the implications of employing simple ratios to define the boundary between product quality types. We present a complementary approach based on the traditional Grubel and Lloyd (GL) index and demonstrate with numerical examples its versatility and applicability at the product level. © 2006 The Kiel Institute.

Item Type:Article
Keyword:Globalization, Product quality, Vertical and horizontal intra-industry trade
Subject:Intra-industry trade
Subject:Quality of products
Subject:International economic integration
Faculty or Institute:Graduate School of Management
Publisher:Springer
DOI Number:10.1007/s10290-006-0077-5
ID Code:18135
Deposited By: Azwana Abdul Rahman
Deposited On:06 Sep 2011 09:43
Last Modified:06 Sep 2011 09:43

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