OPENNESS TO TRADE IN MANUFACTURES IN THE OECD

How open are the advanced economies to trade with each other? In this paper, openness is calculated relative to the predictions of the monop olistic competition trade model using data on manufacturing trade and production in the OECD in 1985. The paper finds that (1) Japan imports much less than other large OECD countries, while the European countri es have larger import volumes than does the US, (2) Japan and the US e ngage in less intra-industry trade than the rest of the OECD, and (3) the EU countries are less open to imports from Japan and the US than t hose countries are open to imports from the EU.