This paper presents a discussion of the potential channels through which international trade affects the position of low skilled workers in the European Union. After an analysis of the European Union's trade flows showing the predominant role of intra-industry trade with other industrialised countries, the discussion focuses on the potential effects of intra-industry trade on low skilled labour...

FDI have dramatically impacted trade patterns of Central Europe and mode of integrating into global markets. Thanks to FDI, CEEC-10 have moved from inter-industry trade, characteristic of their central planning era, to intra-industry or intra-product trade, as network trade is often referred to. FDI have helped close the initial gap between endowments in high skilled labor and export baskets dr...

The article investigates the revealed comparative export advantage, relative import specialization advantage, relative trade advantage, intra-industry trade and its quality types in agrofood trade of Croatia, Hungary and Slovenia with the European Union (EU) market. The empirical results confirmed bulk of agro-food and forestry products with revealed comparative export advantages on the EU mark...

In recent years, the trading contact between China and South Korea has become more and more close. In the 21st anniversary of the establishment of diplomatic relations between China and South Korea 2013, China has become South Korea’s largest export market and largest import market. At the same time, South Korea has become China’s fourth largest exporter and second largest importer of foreign t...

In this paper we demonstrate that intra-industry trade (or FDI) between identical countries could produce the observed deterioration in the relative wages of unskilled workers. This involves a model of North-North integration through either increased trade flows or increased MNE-based production. Our motivation in this regard is arguments to the effect that trade cannot be responsible for the o...

Does exchanging similar products within the same industry facilitate trade liberalization? While decades of theoretical research identified forceful political and economic reasons for open trade in the presence of high intra-industry trade, there exists surprisingly little empirical evidence supporting the claim. We contend that the lack of evidence is attributable to the common practice of cou...

In this paper, I show that the increasing similarity in GDPs among OECD country pairs leads to higher bilateral trade to GDP ratios. This finding provides some support for the prediction of Helpman [J. Jpn. Int. Econ. 1 (1987) 62], whose model explains intra-industry trade that is prevalent among developed countries. I also show that Helpman’s prediction is rejected for non-OECD countries, amon...