Intra-industry trade:a Krugman-Ricardo model and data

Soo, Kwok Tong (2016) Intra-industry trade:a Krugman-Ricardo model and data. Economica, 83 (330). pp. 338-355. ISSN 0013-0427

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This paper develops a model of international trade with a continuum of countries and sectors, which combines Ricardian comparative advantage and increasing returns to scale. Trade consists of both inter- and intra-industry trade. The model predicts that the trade-weighted Grubel-Lloyd index of intra-industry trade is positively related to the number of exported sectors, and is negatively related to the number of imported sectors. Empirical evidence from a panel of countries using the UN Comtrade database supports these predictions, and the model fits the data better for non-OECD than for OECD countries.

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This is the peer reviewed version of the following article:Soo, K. T. (2016), Intra-industry trade: A Krugman–Ricardo Model and Data. Economica, 83: 338–355. doi: 10.1111/ecca.12173 which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving
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21 Oct 2015 05:00
Last Modified:
01 Mar 2023 00:24