ON THE ECONOMIC RELATIONSHIP BETWEEN MARGINAL INTRA-INDUSTRY TRADE AND LABOUR ADJUSTMENT IN A DIVISION OF LABOUR MODEL In the context of Ethier’s (1982) division of labour model, this paper accomplishes three tasks. First, we complement existing literature on the algebraic properties of marginal intra-industry trade (MIIT) measures by embedding one of these measures in a general equilibrium mod...

The large volume of intra-industry trade is often cited as a critical element favoring trade theories based on increasing returns and imperfect competition over those with constant returns and perfect competition. The former provide an elegant account of intra-industry trade, while the latter, it is often argued, cannot. This paper provides an account of intra-industry trade based squarely on c...

This study examines the marginal intra-industry trade (MIIT) and its components horizontally, and marginal vertical intra-industry trade (MVIIT) applied to the United States. We present an alternative methodology to evaluate marginal intra-industry trade (MIIT) which was presented by Thom and McDowell (1999) and Azhar and Elliot (2008). Using a panel data approach, the results show a negative c...

2 International trade is traditionally thought to consist of each country exporting the goods most suited to its factor endowment, technology, and climate while importing the goods least suited for its national characteristics. Such trade is called inter-industry trade because countries export and import the products of different industries. But the top exports and imports of most industrial co...

2 International trade is traditionally thought to consist of each country exporting the goods most suited to its factor endowment, technology, and climate while importing the goods least suited for its national characteristics. Such trade is called inter-industry trade because countries export and import the products of different industries. But the top exports and imports of most industrial co...

This paper exposes some common misinterpretations of the "new trade theory". First, the view that high scale economies give rise to high levels of intra-industry trade is challenged. It is shown that the monopolistic-competition trade model predicts a negative relationship between internal scale economies and intraindustry trade. Second, in spite of a common perception that the "new" theory exp...

China and ASEAN have been maintaining a relationship both cooperative and competitive in the textile trade. Due to its labor intensive feature and high dependence on foreign trade , the textile trade has received much attention after the 2008 financial crisis. The customs data (classified by the HS code) from year 2006-2009 is employed to research the impact of the crisis on the trade pattern o...

T his study investigates the effects of extra-ECOWAS merchandise trade and investment flows on the transmission of business cycles in the selected ECOWAS between 1985 and 2014.  The study finds that total trade and foreign direct investment (FDI) significantly influence the transmission of business cycles with elasticities of 1.1 and 0.7, respectively in the long run. There are little vari...