Intraindustrial Commerce Colombia-United States : Highly Technological Assets Case

This paper provides a review of intra-industry trade between the United States and Colombia from 1995 to 2005, based on data from the BACI (Base pour l'Analyse du Commerce International or Database for International Trade Analysis). During this period of time, intra-industry trade accounted for 9% of the goods traded with the United States; and, judging from the product categories under the OECD (Organization for Economic Co-operation and Development), a portion of these were high-technology products. The intra-industry trade index went up from 6 in 1995 to 23 in 2005. The results of multimodality tests revealed that the G&L index has more than one mode. Given the existence of economies of scale in technologically sophisticated sectors, and hands-on learning, this result could be due either to segmented markets or to multiple equilibria