Industrial structure and Australia - UK intra-industry trade

This paper tests industry-specific hypotheses of the determinants of intra- industry trade in the context of Australia-UK trade. In doing so it separat es intra-industry trade (IIT) into IIT in horizontally differentiated produ cts and IIT in vertically differentiated products. It finds that the latter is the dominant former of IIT. Further the paper investigates the robustne ss of empirical results on testing industry-specific hypotheses to the choi ce of national (UK or Australian) industrial structure characteristics. The assumption of uniform industrial structures across countries adopted in ot her studies is shown nor to be justified.