BACK TO THE FUTURE - TAKING STOCK ON INTRAINDUSTRY TRADE

This paper begins by examining the unresolved issues identified in an earlier analysis of the literature. It then sets out developments in t heory, measurement, empirical analysis and policy. The progress made o n each of these fronts is assessed and remaining unresolved issues ide ntified. The paper argues that the last decade has seen very considera ble progress in the measurement of intra-industry trade and in the way the empirical investigations are conducted. It also argues that on th e modelling front considerable progress has been made in incorporating spatial and growth dimensions into the paradigm.