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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


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.

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Additional Metadata

Item Type: Article
Subject: Intra-industry trade
Subject: Quality of products
Subject: International economic integration
Divisions: Graduate School of Management
DOI Number: https://doi.org/10.1007/s10290-006-0077-5
Publisher: Springer
Keywords: Globalization, Product quality, Vertical and horizontal intra-industry trade
Depositing User: Azwana Abdul Rahman
Date Deposited: 06 Sep 2011 09:43
Last Modified: 09 Dec 2015 03:02
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1007/s10290-006-0077-5
URI: http://psasir.upm.edu.my/id/eprint/18135
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