On the stability of intra-industry trade

Kazunobu Hayakawa, Tadashi Ito, Toshihiro Okubo

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

This paper presents the novel finding that, in contrast to what the previous literature has shown, two-way intra-industry trade (IIT) in product–country pairs, when looked from a dynamic perspective, is very unstable by using disaggregated trade data of OECD countries. Many products frequently switch among two-way, one-way and zero trade over time. To measure the stability of two-way trade, we propose a measure that we refer to as the “IIT stability index”. Our estimation results using the proposed measure show that two-way trade involving markets of different sizes and long distance are likely to be unstable and primary products are more unstable than manufactured products.

Original languageEnglish
Pages (from-to)1-12
Number of pages12
JournalJournal of The Japanese and International Economies
Volume45
DOIs
Publication statusPublished - 2017 Sep

Keywords

  • Intra-industry trade
  • Stability
  • Two-way trade

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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