Citation
Abdul Karim, Mohd Azhar and Elliott, Robert J. R.
(2008)
On the measurement of changes in product quality in marginal intra-industry trade.
Review of World Economics, 144 (2).
pp. 225-247.
ISSN 1610-2878; ESSN: 1610-2886
Abstract
There is a long established thread of the international trade literature concerned with the measurement of intra-industry trade (IIT). Two distinct strands of the literature have developed: First, measures of marginal IIT that are concerned with the adjustment implications of volume-based changes in IIT; second, measures of vertical and horizontal IIT that are concerned with quality-based differences in IIT. This paper marries the two literatures to provide a new perspective on the smooth adjustment hypothesis debate and suggests the use of the marginal product quality index, a new measure of changes in quality in matched trade changes that complements dynamic measures of volume-based IIT.
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