Academic literature on the topic 'Intra-industry trade'

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Journal articles on the topic "Intra-industry trade"

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Özgür Kayalica, M., and Gülgün Kayakutlu. "Intra-industry trade with pollution concerned cooperation." Environmental Economics 7, no. 1 (March 24, 2016): 9–15. http://dx.doi.org/10.21511/ee.07(1).2016.01.

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The authors develop a two-country, two-firm intra-industry trade model. Each firm is operating at its home country and producing homogeneous goods to be consumed in both countries. Governments apply quantity restriction on pollution. Every individual country is affected from the pollution generated during the production process of its own firm. The model shows that efficiency in pollution abatement technology plays a crucial role on welfare maximizing effort of governments. A critical level of pollution abatement technology determines the preponderance of environmental misgivings in welfare maximizing behavior. The more efficient the firms in pollution abatement technology, the less stricter the governments will be in their policies to reduce negative environmental externalities
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Fung, K. C. "Collusive Intra-Industry Trade." Canadian Journal of Economics 24, no. 2 (May 1991): 391. http://dx.doi.org/10.2307/135629.

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Van Biesebroeck, Johannes. "Dissecting intra-industry trade." Economics Letters 110, no. 2 (February 2011): 71–75. http://dx.doi.org/10.1016/j.econlet.2010.10.004.

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Bergstrand, Jeffrey H., and Peter Egger. "Trade Costs and Intra-Industry Trade." Review of World Economics 142, no. 3 (October 2006): 433–58. http://dx.doi.org/10.1007/s10290-006-0075-7.

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Michaely, Michael, and David Wajnryt. "Intra-Industry, Intra-Product, and Inter-Product Trade." Global Economy Journal 17, no. 3 (June 2, 2017): 20170024. http://dx.doi.org/10.1515/gej-2017-0024.

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The study starts with clarifying the distinction between intra-product and inter-product trade as origins of intra-industry trade. The empirical analysis shows that over the last half century intra-industry trade has strongly intensified, though this trend became less pronounced during the last two decades. Intra-industry trade characterizes the trade flows of Europe distinctly more than of any other major geographical region. It is clearly related to a country’s level of per-capita income; to its size, as measured by aggregate income; to the share of the manufacturing sector in the country’s trade; and, most strongly, to the level of commodity diversification of a country’s trade.
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Hellvin, Lisbeth. "Intra-Industry Trade in Asia." International Economic Journal 8, no. 4 (December 1994): 27–29. http://dx.doi.org/10.1080/10168739400000043.

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Hellvin, Lisbeth. "INTRA-INDUSTRY TRADE IN ASIA." International Economic Journal 8, no. 4 (December 1, 1994): 27–40. http://dx.doi.org/10.1080/10168739400080027.

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Leitão, Nuno Carlos. "United States’ Intra-Industry Trade." Economic Research-Ekonomska Istraživanja 24, no. 2 (January 2011): 68–76. http://dx.doi.org/10.1080/1331677x.2011.11517456.

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Yu, Zhihao. "Entrepreneurship and intra-industry trade." Weltwirtschaftliches Archiv 138, no. 2 (June 2002): 277–90. http://dx.doi.org/10.1007/bf02707745.

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Thom, Rodney, and Moore McDowell. "Measuring marginal intra-industry trade." Weltwirtschaftliches Archiv 135, no. 1 (March 1999): 48–61. http://dx.doi.org/10.1007/bf02708158.

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Dissertations / Theses on the topic "Intra-industry trade"

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Chen, Tina Yiping. "Trade liberalisation, intra-industry trade and adjustment costs." Phd thesis, 1999, 1999. http://hdl.handle.net/1885/144503.

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Eliasson, Johanna. "Intra-industry trade between Sweden and Russia." Thesis, Jönköping University, JIBS, Economics, 2008. http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-11636.

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The purpose of the thesis is to determine whether Russia has changed its intra-industry trade pattern with Sweden between the years of 1997 and 2003. To be able to see any changes five products, vehicles, grain, forest, optical instruments and jewellery has been chosen. With the Grubel-Lloyd index the products will be analysed and the index will also measure the extent of the intra-industry trade between Sweden and Russia

Theories predict that countries with similar factor endowments and income tend to have a two-way trade which would indicate that Russia is starting to catch up to the industrialised countries, in this thesis that would be Sweden. The theory of income effects predicts that when consumers are getting a larger budget they will start to move away from the most necessary goods and towards more luxury good consumption.

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Laha, Sidhartha Sankar. "A Study of India`s intra-industry trade." Thesis, University of North Bengal, 2007. http://hdl.handle.net/123456789/554.

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Sichei, Moses Muse. "South Africa-US intra-industry trade in services." Thesis, Pretoria : [s.n.], 2005. http://upetd.up.ac.za/thesis/available/etd-09262005-124632.

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Harjono, Ay San. "Intra-industry in Australia's trade : patterns and determinants /." [St, Lucia. Qld.], 2002. http://www.library.uq.edu.au/pdfserve.php?image=thesisabs/absthe17793.pdf.

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Sağlam, Aziz İbrahim. "Three essays on international trade strategic trade policies, intra-industry trade, and income convergence /." Morgantown, W. Va. : [West Virginia University Libraries], 2006. https://eidr.wvu.edu/etd/documentdata.eTD?documentid=4602.

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Yuan, Ling. "Intra-industry trade between Sweden and middle income countries." Thesis, KTH, Samhällsekonomi, 2012. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-98301.

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Hansson, Pär. "Intra-industry trade: measurements, determinants and growth : a study of Swedish foreign trade." Doctoral thesis, Umeå universitet, Institutionen för nationalekonomi, 1989. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-100372.

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Giri, Jeeten Krishna. "REGIONAL WAGE DIFFERENTIALS, INTRA-NATIONAL TRADE, AND INDUSTRY-LEVEL INTERNATIONAL TRADE, IN INDIA." OpenSIUC, 2018. https://opensiuc.lib.siu.edu/dissertations/1590.

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This dissertation addresses specific issues on domestic and foreign trade in India. The three chapters of the dissertation are summarized as follows. In the first chapter, we analyze the existence of regional wage differences across Indian states, and how domestic trade affects those premiums. We follow a two-step estimation process used in the literature on Labor Economics. Our empirical results show that higher level of domestic imports tends to reduce the state premiums, and higher domestic exports increase those premiums, which is consistent with a specific factor Ricardo-Viner model. Thus, promoting domestic trade by with states specializing in certain industries may lead to higher welfare within the country. In addition, we find, state premiums depend negatively on state-level amenities measured by per-capita power availability, and does not depend on the richness of the State measured by per-capita Net State Domestic Product. In the second chapter, we look at the pattern and determinants of inter-state manufacturing trade in India. In the paper, we use information on 12 manufacturing industries categorized under 5 sectors from 2005 to 2013 with two-year intervals in between. We find that a 1\% decrease in income ratio between importing state net state domestic product and exporting state net domestic product has significantly varying effects on trade flows across the different sectors. For coal and minerals, the effect is 36.8%, for chemical it is 105%, for metals it is 31.5% and for cement, it is 36.8%. In all these case a decrease in income ratio increases exports. For machinery, a 1% decrease in income ratio lead to approximately 9.3% reduction in trade. This suggests that machineries which are capital goods are more imported by richer states, whereas the other goods which can be classified as intermediate inputs are more imported by poorer states. We also find that infrastructure promotes trade and on average infrastructure reduces the effect of contiguity by around 28.6% and promotes trade even between non-contiguous states. Therefore, infrastructure in the form of roadways, highways, and railways must be built and maintained to promote facilitate trade in India. In chapter three, we compare the effects of tariffs and non-tariff barriers on Indian exports. We use Indian HS-96 four-digit industry level export data from COMTRADE and tariff data from TRAINS database for the study. The overall result suggests that input tariffs have the largest effect on exports, followed by final tariff and foreign tariffs. A 1% reduction in input tariff leads to around 8.6% increase in exports. A similar reduction in final tariffs and foreign tariffs lead to 3.6% and 2.8% increase, respectively in exports. Thus, we conclude that the supply side effect of exports dominates the demand side effects. From a policy perspective, if countries try to improve trade balance by imposing high tariffs, it may lead to a negative effect on exports through the input tariff effects.
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Lisiecki, Georg. "Constraints on intra-industry trade between market and planned economies." Thesis, University of Oxford, 1991. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.670297.

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Books on the topic "Intra-industry trade"

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Tharakan, P. K. M., and Jacob Kol, eds. Intra-Industry Trade. London: Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-10464-2.

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J, Lloyd P., and Grubel Herbert G, eds. Intra-industry trade. Cheltenham, UK: Edward Elgar Publishing, 2003.

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Brülhart, Marius, and Robert C. Hine, eds. Intra-Industry Trade and Adjustment. London: Palgrave Macmillan UK, 1999. http://dx.doi.org/10.1007/978-1-349-27173-3.

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Pakistan Institute of Development Economics, ed. Pak-SAARC intra-industry trade. Islamabad: Pakistan Institute of Development Economics, 2013.

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Seo, Jung Soo. Intra-industry foreign direct investment and intra-industry trade in Korea. Canberra: Australia-Japan Research Centre, 2002.

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Chris, Milner, ed. The economics of intra-industry trade. Oxford, UK: Basil Blackwell, 1986.

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Greenaway, David. The economics of intra-industry trade. Oxford: Blackwell, 1986.

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Otto, Andersson Jan, Åbo akademi (1918 ), and Knoellinger Symposium (2nd : 1986 : Åbo Akademi), eds. Nordic studies on intra-industry trade. Åbo: Åbo Academy Press, 1987.

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Kol, Jacob. The measurement of intra-industry trade. [s.l.]: [s.n.], 1988.

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Taeoe Kyŏngje Chŏngchʻaek Yŏnʼguwŏn (Korea), ed. Intra-industry trade between Japan and Korea: Vertical intra-industry trade, fragmentation and export margins. Seoul, Korea: Korea Institute for International Economic Policy, 2009.

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Book chapters on the topic "Intra-industry trade"

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El-Agraa, Ali M. "Intra-industry Trade." In International Trade, 242–63. London: Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-10206-8_16.

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Södersten, Bo, and Geoffrey Reed. "Intra-industry Trade." In International Economics, 146–72. London: Macmillan Education UK, 1994. http://dx.doi.org/10.1007/978-1-349-15030-4_8.

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Södersten, Bo, and Geoffrey Reed. "Intra-Industry Trade." In International Economics, 146–72. London: Macmillan Education UK, 1994. http://dx.doi.org/10.1007/978-1-349-23320-5_8.

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Horvat, Branko. "Intra-Industry Trade." In The Theory of International Trade, 82–84. London: Palgrave Macmillan UK, 1999. http://dx.doi.org/10.1057/9780333983386_13.

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Sawyer, W. Charles, and Richard L. Sprinkle. "Intra-industry trade." In Applied International Economics, 93–116. 5th Edition. | New York : Routledge, 2020. | Revised edition of the authors’ Applied international economics, 2015.: Routledge, 2020. http://dx.doi.org/10.4324/9780429425547-5.

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Kol, Jacob, and P. K. M. Tharakan. "Intra-Industry Trade, Traditional Trade Theory and its Extensions." In Intra-Industry Trade, 1–14. London: Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-10464-2_1.

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Lloyd, P. J. "Reflections on Intra-Industry Trade Theory and Factor Proportions." In Intra-Industry Trade, 15–30. London: Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-10464-2_2.

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Hansson, Pär, and Lars Lundberg. "Comparative Costs and Elasticities of Substitution as Determinants of Inter- and Intra-Industry Trade." In Intra-Industry Trade, 31–50. London: Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-10464-2_3.

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Kol, Jacob, and Paul Rayment. "Allyn Young Specialisation and Intermediate Goods in Intra-Industry Trade." In Intra-Industry Trade, 51–68. London: Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-10464-2_4.

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Tharakan, P. K. M. "Bilateral Intra-Industry Trade between Countries with Different Factor Endowment Patterns." In Intra-Industry Trade, 69–91. London: Palgrave Macmillan UK, 1989. http://dx.doi.org/10.1007/978-1-349-10464-2_5.

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Conference papers on the topic "Intra-industry trade"

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Bernatonyte, Dalia. "ESTIMATION OF LITHUANIAN INTRA-INDUSTRY TRADE DEVELOPMENT." In SGEM 2014 Scientific SubConference on POLITICAL SCIENCES, LAW, FINANCE, ECONOMICS AND TOURISM. Stef92 Technology, 2014. http://dx.doi.org/10.5593/sgemsocial2014/b23/s7.024.

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Hu, Ying, Liyan Han, and Donghui Li. "Intra-Industry Trade in International Tourism Services." In 2008 4th International Conference on Wireless Communications, Networking and Mobile Computing (WiCOM). IEEE, 2008. http://dx.doi.org/10.1109/wicom.2008.2070.

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Gerni, Cevat, Sabri Azgün, Ziya Çağlar Yurttançıkmaz, and Ömer Selçuk Emsen. "Vertical and Horizontal Intra-Industry Trade between Turkey and the World in the Selected Manufacturing Industry Sub-Sectors." In International Conference on Eurasian Economies. Eurasian Economists Association, 2017. http://dx.doi.org/10.36880/c08.01900.

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Intra industry trade is goods and services with the same or similar factor intensity in production or, two-way trade of goods and services that are close substitutes for each other as the demand side. There are two main categories of intra-industry trade: horizontal and vertical intra-industry trade. Intra-industry trade in similar products with differentiated varieties is horizontal intra-industry trade, the intra-industry trade of differentiated goods, which differ in terms of quality and price, is vertical intra trade. The main objectives of this paper are to explain the extent of vertical and horizontal intra-industry trade in the Turkey’s foreign trade with the world in the selected manufacturing industry sectors. İn this study, using Abd-el-Rahman (1991) and Hine, Greenaway and Milner(1995) approach of Intra-ındustry trade decomposition methods has been analyzed the extent and development of vertical and horizontal intra-industry trade In the selected manufacturing industry sub-sectors between Turkey and The World for the period 2010:01-2016:11 by unit value indices.
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Başkol, Murat Ozan. "Intra-Industry Trade between Turkey and Central Asian Turkic Republics." In International Conference on Eurasian Economies. Eurasian Economists Association, 2010. http://dx.doi.org/10.36880/c01.00212.

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Intra-industry trade gained considerable importance in international economics literature in recent years. Today almost one forth of world trade has intra-industry trade nature, which is defined as trade within industries rather than between industries. In other words, intra-industry trade is the simultaneous export and import of goods within the same industry. The most widely used measure of intra-industry trade is Grubel-Lloyd (GL)Index. GL Index measures the extent of intra-industry trade in a particular industry or an economy as a whole. According to GL Index, an index of IIT in trade of industry i goods with country j is computed as : IIT = [ 1 - ( Xij - Mij ) / (Xij + Mij) ] * 100 Grubel-Lloyd Index for an economy, as a whole, is an arithmetic average of the index for individual sectors weighted by their share in the economy’s total trade. IIT = [ 1 - (Σ ( Xij - Mij ) / Σ (Xij + Mij) ] * 100 ( where X ij and M ij are home country’s exports of industry i goods to country j and imports of industry i goods from country j, respectively.) Grubel-Lloyd Index ranges from 0 to 100 and can be expressed as a percentage of the total trade. Higher index values are associated with greater intra-industry trade as a proportion of total trade. The aim of this study is to examine the share of intra-industry trade in Turkey’s foreign trade with Central Asian Turkic Republics within the period 1992 to present by using . For this purpose this paper calculates Grubel-Lloyd index by using the data SITC Rev.3 at 3 digit.
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"A Review of Thailand’s Intra-Industry Trade with ASEAN." In International Conference on Trends in Economics, Humanities and Management. International Centre of Economics, Humanities and Management, 2014. http://dx.doi.org/10.15242/icehm.ed0814062.

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Azgün, Sabri, Ziya Çağlar Yurttançıkmaz, Mine Gerni, and Selahattin Sarı. "Determination of the Level of Intra Industry Trade and Sectoral Competition Power between Turkey and Central Asian Turkic Countries." In International Conference on Eurasian Economies. Eurasian Economists Association, 2016. http://dx.doi.org/10.36880/c07.01521.

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In terms of Intra-industry trade, international investments, technology transfer and capital movements, has increased the interdependence of countries and increasingly have similar economic structures of countries. Intra-industry trade, is of goods and services with the same or similar factor intensity in production or, two-way trade of goods and services that are close substitutes for each other as the demand side. Intra-industry trade, is extremely important in terms of the determination of competitive aspects and of foreign exchange earnings of the country and industry. The aim of this study is to determine the level of intra-industry trade between Turkey and The Turkic Central Asian countries and productive product and sectors to be advantageous in Turkey's intra-industry trade. In this study, Using The Balassa and Grubel-Lloyd index of Intra-ındustry trade measurement methods will be analyzed the development of intra-industry trade between Turkey and The Turkic Central Asian countries for the period 1995-2013 and highly competitive industry and products will be determined on the basis of foreign trade data in STIC 9 digit.
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Yuan, Chang, and Yu-lan Du. "Analysis of Intra-Industry Trade Between China, Japan, and Korea." In 5th International Conference on Social Sciences and Economic Development (ICSSED 2020). Paris, France: Atlantis Press, 2020. http://dx.doi.org/10.2991/assehr.k.200331.064.

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Pak, Yegor V. "Intra-industry Trade in the EAEU: Case of Machine Building." In Proceedings of the External Challenges and Risks for Russia in the Context of the World Community’s Transition to Polycentrism: Economics, Finance and Business (ICEFB 2019). Paris, France: Atlantis Press, 2019. http://dx.doi.org/10.2991/icefb-19.2019.28.

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"Study on Sino-US Intra-industry Trade from the Perspective of Intra-product International Specialization." In 2018 International Conference on Economics, Politics and Business Management. Francis Academic Press, 2018. http://dx.doi.org/10.25236/icepbm.2018.42.

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Chen, Shuang-xi, Lei Wang, and Shan-shan Yu. "Comparison Analysis of Intra-Industry Trade in Service Industry among China, Japan and Korea." In 2010 International Conference on Management and Service Science (MASS 2010). IEEE, 2010. http://dx.doi.org/10.1109/icmss.2010.5577142.

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Reports on the topic "Intra-industry trade"

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Markusen, James, and Anthony Venables. The Theory of Endowment, Intra-Industry, and Multinational Trade. Cambridge, MA: National Bureau of Economic Research, April 1996. http://dx.doi.org/10.3386/w5529.

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Becuwe, Stéphane, Bertrand Blancheton, and Christopher Meissner. The French (Trade) Revolution of 1860: Intra-Industry Trade and Smooth Adjustment. Cambridge, MA: National Bureau of Economic Research, October 2018. http://dx.doi.org/10.3386/w25173.

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Melitz, Mark. The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Cambridge, MA: National Bureau of Economic Research, April 2002. http://dx.doi.org/10.3386/w8881.

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Markusen, James, and Keith Maskus. A Unified Approach to Intra-Industry Trade and Direct Foreign Investment. Cambridge, MA: National Bureau of Economic Research, June 2001. http://dx.doi.org/10.3386/w8335.

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Brander, James, and Barbara Spencer. Intra-Industry Trade with Bertrand and Cournot Oligopoly: The Role of Endogenous Horizontal Product Differentiation. Cambridge, MA: National Bureau of Economic Research, March 2015. http://dx.doi.org/10.3386/w21008.

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Gilbert, John, and Nilankan Banik. Regional Integration and Trade Cost in South Asia. Inter-American Development Bank, June 2008. http://dx.doi.org/10.18235/0011317.

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Until now, amount of inter-country trade within South Asian nations have been low. While similarities in exports profile can be seen as a reason for this low value of trade it might not be a valid one, especially in presence of growing South Asian income. Intra-industry trade theory suggests that complementarity might actually increase trade in presence of a rising income. There can be other important factors, such as, trade costs. Using an augmented gravity model in a panel framework the authors try to identify the components of trade costs that might have resulted in lower inter-country South Asian trade. This paper was prepared for the Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s 4th Annual Meeting held in Lima, Peru, on June 17, 2008.
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Lee, Hyun-Hoon, Cyn-Young Park, and Ju Hyun Pyun. International Business Cycle Synchronization: A Synthetic Assessment. Asian Development Bank, August 2022. http://dx.doi.org/10.22617/wps220355-2.

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This paper presents findings from a study that synthetically assessed the three major transmission channels of international business cycles: trade, foreign direct investment (FDI), and portfolio flows between economies with multiple fixed effects. Results showed that real and financial integration generates heterogeneous impacts on business cycle comovement. Trade integration and greenfield FDI lead business cycle comovements, likely due to deepening intra-industry trade and dense global value chains. Higher debt market integration is associated with more synchronized business cycle comovement, while equity integration leads to business cycle divergence.
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Lucenti, Krista, Sebastián Galarza S., and Pablo Guerrero. Trade Logistic and Regional Integration in Latin America & the Caribbean. Inter-American Development Bank, December 2009. http://dx.doi.org/10.18235/0011078.

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During the past few decades, the landscape of the world economy has changed. New trade patterns reflect the globalization of the supply chain and intra-industry trade, and increasing flows between neighboring countries and trading blocs with similar factor endowments. Similarly, the approach to production, trade, and transportation has evolved incorporating freight logistics as an important value-added service in the global production. This integrated approach have become essential, and as such, both the trade agenda and freight logistics are beginning to converge providing an unparalleled opportunity for countries to deepen their integration with neighboring countries and their national performance for transport related services. Consequently, developing countries are finding themselves hard-pressed to adjust their policy agendas to take into account costs not covered in past rounds of trade negotiations.
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Financial Infrastructure Report 2022. Banco de la República, June 2023. http://dx.doi.org/10.32468/rept-sist-pag.eng.2022.

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Banco de la República's monitoring of the local financial market infrastructure is an additional contribution to the country's financial stability. One of the products of that monitoring has been the Payment Systems Report, which is now known as the Financial Infrastructure Report. The change in name, as of this edition, is intended to reflect in a broader way the issues that are addressed in the report. The 2022 edition includes several changes that are the result of a comparative study of financial infrastructure reports prepared by other central banks. These changes seek to make the report more fluid and easier to read, including main points and selected key figures for the different interest groups to which it is addressed. The report shows the financial infrastructure continued to render its services without interruption, with general evidence of good performance in 2021. Additionally, the resilience of the Central Counterparty Risk of Colombia (CRCC) and the Large-value Payments System (CUD) to extreme events was validated, based on stress tests conducted according to international standards (focused on liquidity and credit risk). As for retail payments, transactional information indicates the use of electronic instruments increased in terms of value during 2021 compared to 2020 (credit and debit cards, checks and electronic funds transfers). The use of debit and credit cards in payments rose to levels similar to those reached in the pre-pandemic year. Meanwhile, electronic funds transfers continued to grow. Although the results of the BR 2022 survey show cash continues to be the instrument most used by the public for regular payments (like the situation in other countries), the perception of its use decreased significantly to 75 % (87 % in 2019). Also, in commerce, cash was the preferred instrument for customers. However, in this measurement, several retail channels such as hairdressers, drugstores and restaurants joined the group that has traditionally received electronic payments for a value greater than 10% of their sales (hypermarkets and gas stations). Likewise, for nearly 50% of the population, cash payments are lower than before the pandemic. This is consistent with the transactional increase in electronic payment instruments that was observed in 2021. Banco de la República continues to monitor the technological developments that have expanded and modernized the supply in the international and local payments market, as these are issues of interest to the industry that provides clearing and settlement services. This report outlines the Pix case for instant payments in Brazil, the projects that are underway regarding the possible issue of digital currency by central banks (CBDC) for cross-border payments, as well as an approach to the Fintech ecosystem in Colombia, with an emphasis on companies that provide payment services. Leonardo Villar Governor Main points: 2022 The local financial infrastructure was safe and efficient throughout the year. The services of the financial infrastructure were proved on a continuous basis, showing good performance overall. Less momentum in the large-value payment system CUD activity declined versus the previous year because of fewer government deposits with BanRep. This was offset partially by growth in repos to increase money supply and in retail-value payments (electronic funds transfers, checks and cards). Increased momentum in financial market infrastructures. Larger amounts were cleared and settled through the Central Securities Depository (DCV) due to an increase in the market for sovereign debt. Operations managed by the Central Counterparty Risk of Colombia (CRCC) increased due to inclusion of the foreign exchange segment and the positive evolution in non-delivery forward peso/dollar contracts. Added confidence in the peso/dollar spot foreign exchange market due to CRCC interposition. Number and value of trades grew, mainly due to the adjustment of therisk management model for the FX segment and the increase in the limiton net selling positions in dollars. Stress testing with international standards to validate CRCC and CUD resilience Stress tests conducted independently by the SFC, BanRep and the CRCC, like those done in England and the United States, concluded that the CRCC's risk management model allows it to withstand extreme market events and simultaneous defaults by its main members. Based on the experience of other central banks, BanRep strengthened its intraday liquidity risk stress exercises in the CUD by incorporating temporary payment delays. It calculated that a two-hour delay by a key participant increases the system's liquidity needs by 0.5%. Electronic payments increased during 2021 According to transactional information, all electronic payment instruments increased in value versus 2020 (electronic funds transfers, checks and debit and credit cards). Electronic funds transfers continued to grow (80% from legal entities), with the participation of closed schemes driven particularly by the use of mobile wallets (35% of the number of intra-transfer transactions). The use of debit and credit cards for payments climbed to levels similar to those witnessed in the pre-pandemic year. Cash continues to be the instrument most used by the public for regular payments. The results of the BanRep survey in 2022 show that the perception of the use of cash declined significantly to 75% (87% in 2019), and about 50% of the population perceive their cash payments as being lower than those they made before the pandemic. Electronic funds transfers were second most used instrument, having increased to 15% (3% in 2019). Also, in commerce, cash was the preferred instrument of payment for its customers; however, several commerce channels received more than 10% of the value of their sales in electronic payments (hypermarkets 35%, gas stations 25%, hairdressers 15%, drugstores 14% and restaurants 12%). Continuous technological developments have broadened, and modernized services offered in the payments market. Pix (instant payments in Brazil). The high level of adoption of instant transfers in Brazil motivated a review of its strengths; namely, the possibility of different use cases between individuals, businesses, and government; high participation by financial and payment institutions; free of charge for individuals and the possibility of charging legal entities, and simple user experience. Digital currencies in central banking. Several groups of countries have joined forces to conduct pilot projects with wholesale CBDCs for cross-border payments. Flows generated by international trade, foreign investment and remittances between individuals can be processed more efficiently, transparently, and securely by reducing their cost and increasing their speed. Due to the constant progress being made on this issue, BanRep will continue to monitor all CBDC-related matters. The fintech ecosystem for payments in Colombia. A high percentage of existing FinTech companies in the country are dedicated to offering digital payment services: wallets, payment gateways, mobile devices (point-of-sale terminals) and acquisition. These have driven innovation in payment services.
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10

Financial Infrastructure Report 2023. Banco de la República, December 2023. http://dx.doi.org/10.32468/rept-sist-pag.eng.2023.

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Abstract:
Introduction The Financial Infrastructure Report is a product of Banco de la República’s (Banrep) continuous efforts to scrutinize financial market infrastructures (FMIs) in Colombia, besides being a contribution to analyzing and monitoring the country’s financial stability. If FMIs are not managed properly, they can pose significant risks to the financial system and be a possible source of contagion, especially in periods of market stress. The domestic financial infrastructure during 2022 was safe and efficient, allowing the payment system and financial markets to operate normally, which lent stability and confidence to its participants. This 2023 edition of the Report includes analysis on the mitigation of intraday liquidity risk in the large-value payment system (CUD), as well as credit and liquidity risk based on countercyclical practices for the management of initial and variation margins in the Cámara de Riesgo Central de Contraparte S.A. (CRCC). In addition, the Report addresses two topics that are at the center of international debate. The first deals with cyber risk, an issue that cuts across the entire domestic financial infrastructure. It is considered one of the most relevant risks; therefore, its effective management has been the focus of recommendations by multilateral organizations. On this occasion, a section is included that outlines these recommendations and focuses on highlights in local progress towards achieving substantial levels of cyber resilience in the Colombian payment system. It is worth noting that Banco de la República is moving forward with a research agenda to quantify the impact instances of cyber risk could have on the payment system and on financial stability. The second topic addresses the need to analyze the adoption of special frameworks for orderly settlement on the part of central counterparties (CCPs), so as to mitigate systemic risk, recognizing the role these types of entities play in the development of markets and financial stability, as well as their essential contribution to mitigating counterparty and liquidity risks. As for retail payments, the use of electronic payment instruments rose significantly in value during 2022 compared to 2021. Transactional data shows the increase in the use of electronic transfers, both intra- and interbank, was particularly important, having become an object of greater innovation, as evidenced, for example, by the use of mobile wallets. Although the adoption for electronic transfers and debit and credit cards has increased in Colombia over the last ten years, compared to other economies, the country still has low levels in this respect. According to the most recent survey on perception of the use of payment instruments conducted by Banrep (2022), cash continues to be the instrument most used by Colombians for regular payments involving small amounts. This points to an important area for increasing the adoption of digital payments, which would materialize with implementation of the different initiatives the industry and the financial authorities (Ministry of Finance-URF, the Office of the Financial Superintendent of Colombia and Banco de la República) are carrying out to develop the instant payments ecosystem. On the other hand, analyses of the risks associated with crypto assets, which are understood as alternatives to the regulated assets in the traditional financial system, but traded in an unregulated digital environment, are also relevant. In this respect, the Report looks at the potential risks that could arise from the added adoption of stablecoins in economies, specifically in a global context where authorities are studying possibilities for using different mechanisms to contain the risks inherent in crypto assets. The third section of the Report deals with aspects such as smart contracts and programmable money, which are innovations that could be considered in an eventual issue of digital currencies by central banks. In keeping with the previous editions of this Report on matters related to central bank digital currencies (CBDC), this edition explains how these two technological functionalities could accompany the design of a retail CBDC, as well as some of the risks that should be considered. Also addressed in this section is the topic of standardized messaging, which is a trend in the field of payments. Reference is made to the United Kingdom’s experience with the adoption of standardized messaging, and its contributions to interoperability.
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