As a result of rapid economic growth and increased influence of globalization in international trade activities, intra-industry trade (IIT) becomes prominent across Asia including Malaysia. Free trade agreements and creations of free trade areas have encourage increased cross border investments through production networking as well as fragmentation of production, especially in manufacturing sec...

In this study we examine the widely held view that intra-industry trade (IIT) entails relatively low adjustment costs. We construct a panel of industry level trade, production and employment data for Ireland. IIT is calculated using the conventional Grubel-Lloyd index as well as alternative measures of marginal IIT. Our measure of labour adjustment is defined as the share of intra-industry job ...

Recent developments, including the analysis of firm-level adjustment to falling trade costs, have contributed to a revival of interest in intra-industry trade (IIT). Most empirical work still relies on the standard Grubel-Lloyd measure. This however refers only to international trade, disregarding income flows stimulated by repatriated profits of multinational firms. Given the overwhelming impo...

This paper formulates an empirical model to estimate the impact of endogenous new RTA membership on trade structure. The likelihood of new RTA membership is influenced by economic fundamentals such as country size, factor endowments and trade and investment costs. In a sample of country-pairs covering mainly the OECD economies we find a particularly strong effect of endogenous RTAs on intra-ind...