This paper examines the relationship between per capita GDP differences and bilateral intraindustry trade shares. The relationship is negative in OLS regressions but positive in fixed-effect regressions, and evidence is presented suggesting this is due to the presence of vertically...

This paper analyzes a formal, dynamic model of the center-periphery problem. The model features falling relative demand for agricultural goods, a higher rate of technical change in manufacturing, and a quality-differentiated manufactured good. Income differences imply a potential for...

This paper investigates empirically one aspect of the vertically differentiated-models of intraindustry trade. These models predict that the pattern of trade within an industry is based on comparative advantage rather than being completely random. An empirical model is specified in which the...