DETERMINANTS OF INTRAINDUSTRY TRADE - A LONGITUDINAL, CROSS-COUNTRY ANALYSIS

This study examines the determinants of intra-industry trade (IIT) usi ng longitudinal data for 68 countries for 1970-1987. The analysis dist inguishes between manufacturing and nonmanufacturing countries and com pares traditional static estimates with dynamic ones. This approach pe rmits distinctions between equilibrium and disequilibrium structures a nd, similarly, between historical and current sources of IIT. The resu lts are generally supportive of IIT hypotheses, but there are importan t differences between manufacturing and nonmanufacturing countries and between the static and dynamic structures. Moreover, the extent of II T appears to be dominated more by preference than by scale differentia ls, at least among manufacturing countries.