Using data that represent the six-digit North American Industrial Classification System-classified industries that comprise the US manufacturing sector and that span the years 1989–2005, we test the validity of the smooth adjustment hypothesis (SAH). To our knowledge, this is the first...

According to smooth adjustment hypothesis (SAH), intra-industry trade (IIT) has low adjustment cost compared with inter-industry trade. The purpose of this paper is to examine the hypothesis by using panel technique for Iran’s manufacturing industries during 2002–2006. Comparing...

In the q theory approach, the firm faces convex costs of adjustment and equals the marginal valuation of a unit of capital, with the marginal cost of investment. In the irreversible investment literature, the firm must consider future opportunities and costs because capital expenditures are at...

Measuring horizontal intra-industry trade and vertical intra-industry trade (VIIT) requires that traded products be classified as horizontally differentiated and vertically differentiated, and Greenaway et al. (1994) do this by using the relative unit values of exports and imports. We used the...

This paper examines the determinants of intra-industry trade (IIT) in the Romanian automobile parts and accessories sector. The trade in this sector between Romania and 12 countries (Austria, Belgium, Bulgaria, Croatia, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland and...

The firm-level approach to intra-industry trade reveals that the variation in the number of exporters or exported varieties (extensive margin) accounts for a greater share of the changes in aggregate trade than the variation in the average exports per firm variety (intensive margin). This paper...

During the last decades, international trade flows of the industrialised countries became more and more intra-industry. At the same time, employment perspectives particularly of the low skilled by tendency deteriorated in these countries. This phenomenon is often traced back to the fact that...

This study attempts to analyse the extent of intra-industry trade (IIT) in India’s agricultural trade. This study showed that the agricultural trade between India and its two major trading partners, the USA and European Union, was mainly inter-industry in nature. However, there was a mild...

This paper analyses impact of the foreign direct investment (FDI) on the intra-industry trade (IIT) patterns in the Visegrad Countries (VCs) (the Czech Republic, Hungary, Poland and Slovakia) in the period 1995–2008. The FDI has been a driving force of these countries’ foreign...

Intra-industry trade (IIT) plays a pivotal role in Indian textile industry. It is a new phenomenon. Since 1960, this concept has been used by Pieter Verdoorn and Bela Balassa. The aim of this paper is to measure the level of IIT in Indian textile industry. For this purpose, the...