Thesis (Honors)--College of William and Mary, 2009. / Includes bibliographical references (leaf xxxi). Also available via the World Wide Web.

The purpose of this thesis is to analyse the pattern of intra-industry trade (IIT) between Sweden and EU 15 during the time period 1980-2002. Focus is put on the Swedish manu-facturing industry, which has been divided into the forest, metal and machinery industries. With help of the Grubel-Lloyd index, values have been calculated in order to measure the size of IIT with the other Member States and in product groups. Theories about two-way trade argue that countries with similar characteristics have more IIT. The results from the empirical findings show that the Swedish IIT is higher with nearby countries such as Denmark, Finland and Germany. Similar for these countries are the factor endowments, GDP per capita, culture, language, and the closeness to Sweden. The forest industry has more net trade than IIT. In the metal and machinery industries, the IIT is as large as the net trade. Regarding two-way trade within product groups, the analysis proved that products which can be differentiated into more sub-groups have more IIT. A large part of the products have higher net trade than IIT.

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.

The thesis investigates three selected issues pertaining to the Malaysian Manufacturing sector namely industries growth channels, imported inputs and intra-industry trade determinants. For each of this issue we have adopted a static and a dynamic estimation approach. In the static estimation the result presented are based on Ordinary Least Square, Fixed and Random Effect besides Generalized Least Square estimations. Meanwhile in the dynamic estimation, we focused on result of the difference and system GMM estimations. For industries growth channels, the findings suggest that at aggregate industry level, fixed capital formation and human capital channels are always statistically significant regardless of the test applied either in static or dynamic models estimation. The significance of fixed capital formation is consistent with the strong and cumulative saving and investment condition in Malaysia which has had a significant effect on the capital formation of the country. Our findings for foreign direct investment channel might suggest that Malaysian manufacturing industries has had problem to absorb the transfer of technology that had impede the growth of the sector. Meanwhile, a negative association between government consumption and economic growth might indicate that the government expenditures pattern might have distort the allocation of resources in the economy especially the manufacturing sector. Our findings suggest that the nature of the relationship between manufactured exports and economic growth is negative which might indicate that Malaysian manufactured exports were actually driven by the economy growth. Further analysis at individual export-oriented industry level shows that manufactured exports and government consumption channels have influence growth in both resource-based and non-resource based industries. Our analysis also include trade liberalization estimation which suggest that trade liberalization has a positive causality relationship with the growth of industries through all selected channels. Regarding the imported inputs analysis, the dynamic estimation results show that imported inputs have a positive relationship with industries owned by the non-Malaysian, but not for industries owned by the Malaysian. Our finding for industries owned by the Malaysian is consistent with the government actions that have strongly encouraged them to use domestic inputs through implementation of various incentives. This is because the implementation of the first round of the Import Substitution phase (1957-1967), had created an industrialization era which relied heavily on imported inputs and machines which resulted in distortions in domestic product prices, low value added, poor domestic economy linkages and inequalities in income and employment. On the contrary, our findings for all static and dynamic models suggest that imported input have a positive relationship with the growth of industries owned by non-Malaysian. This result might indicate that industries whose import their intermediate inputs have increased their growth performance and productivity. Meanwhile, at firms’ level, imported inputs suggest a positive relationship with firms owned by both Malaysian and non-Malaysian. Our analysis again include trade liberalization estimation which show that trade liberalization have a positive relationship with the imported inputs content in industries owned by Malaysia while at firms level, only non-tariff index shows a positive relationship. Last issue relates to the intra industry trade in Malaysian manufacturing sector. Our findings suggest that the gross domestic products variables which proxies the market size of a country, the similarity in income and the relative size effects between Malaysia and its trading partners has had influence the share of intra industry trade of the manufactured goods. As for the other country-characteristic determinants, we found a positive relationship between foreign direct investment and the share of intra-industry trade which support the theoretical framework proposed by Grubel and Lloyd (1975) and Greenaway and Milner (1986). Similarly, distance and trade imbalance also indicates a significant negative relationship with the trade share. Meanwhile at individual industry level, our findings suggest that a majority of the gross domestic product variables indicate a statistically significant relationship with the trade share in the dynamic estimation models for the wood, textiles and electrical and electronic industries. Contradictory, the maximum value of gross domestic products has a statistically significant relationship in the static estimation models for the rubber, textiles and electrical and electronic industries, respectively. Meanwhile, the other country-characteristic determinants such as foreign direct investment, trade imbalance and trade orientation have a statistically significant relationship in both static and dynamic estimations models in a majority of the Malaysian export-oriented industries. On the other hand distance, border and asean have a statistically significant relationship in only the static estimation models for the industries.

The principal purpose of this study is to provide a refined empirical investigation concerning country-specific determinants of horizontal and vertical intra-industry trade (IIT,) in relation to South Africa using the gravity model of trade in a panel data setting. Prior to investigating the case of South Africa's intra-industry trade a critical review of the relevant theoretical, methodologcal, and empirical literature is provided. The study operationalises the theoretical dstinction between horizontal and vertical IIT using the latest methodology of decomposing total IIT into horizontal intra-industry trade (HIIq and vertical intra-industry trade (WIT,). Thts study makes several advances on earlier empirical studies of intra-industry trade determinants. These include the introduction of new countq-specific determinants of intraindustry trade that previous studies have not examined. Furthermore, it is the first empirical study that traces the relationshp between intra-industry trade flows and intellectual property rights (IPRs). Moreover, to ensure the sensitivity and robustness of the results, several econometric approaches have been used in estimating the gravity model of South Africa's intra-industry trade: the consistent coefficient approach, the fixed effects approach, the random effects approach, and the between effects approach. The econometric results are generally satisfactory in terms of economic interpretation and statistical significance and thus offer new empirical validation to the theoretical explanatory variables. The key findngs suggest the following: the volume of South Africa's IIT has increased during the study period and its WIT exceeds its HIIT. The latter result reflects the nature of South Africa's trade as it imports high valued added products and exports primary and mineral products. South Africa's intra-industry trade and its two components are positively related to market size and standard of living, and negatively related to geographcal distance. Furthermore, separately, the IPRs and the imitation ability of South Africa's tradmg partners are not important factors in determining IIT flows; however, the interaction between them is an important factor. Thts study also reveals South Africa should pursue its intra-industry trade with rest of world concentrating on local industries that produce most competitive varieties, absorbing labor and other resources from the production of other varieties.

This paper analyses the South African trade data from1992 until 2006 by means of a Grubel-Lloyd index, a measurement of marginal intra-industry trade and a revealed comparative advantage (RCA) indicator. During this period a lot happened that influenced the South African trade policy, e.g. the political transition in 1994, the formation of the World Trade Organisation in 1995, the rise of China as trading power, etc. The purpose is not only to analyse the current structure of South African trade, but also to examine its structural change over time. As a result this paper shows that South Africa is principally a supplier of natural resources to both industrialised and emerging economies. With respect to its African neighbours South Africa has a more advantageous trading position. More general this paper shows that an indicator reaches significant different values, if different trading partners or industries are analysed.(author´s abstract) / Series: Department of Economics Working Paper Series

Intra-industry trade is a new phenomenon in international trade theory and has attracted interest from economists, in the form of both empirical and theoretical work. The first attempt to measure the extent of intra-industry trade in South Africa was under taken by Simson (1987). In his study Simson (1987) found that the amount of intra-industry trade accounted for only one-third of total trade. This is low compared to many industrialized countries. This thesis aims to analyze the extent of intra-industry trade within the context of trade liberalization. Chapter two provides the evolution, background and an overview of the literature of the concept of intra-industry trade. This chapter is followed by a presentation of the different measurement of intra-industry trade. But, however the Grubel Lloyd (1975) index remains the most commonly used index in the literature. A fourth chapter estimated the level of intra-industry trade in South Africa for the period 1972 to 1993. This chapter concludes that intra-industry trade in South Africa is a real phenomenon and not just a statistical novelty as argued by Finger (1975). It was is concluded that intra-industry trade is low when compared to most of its trading partners and there remains much scope for the growth of intra-industry trade. The fifth chapter discusses the role of regional integration and intra-industry trade. It is concluded that the levels of intra-industry trade between South Africa and with the countries in the Southern African region is relatively low when compared to the intra-industry trade between South Africa and its major trading partners, nevertheless there remains scope for the growth of intra-industry trade within the region as the countries become more similar. Chapter six discusses the commercial and welfare effects of intra-industry trade, concluding that there are advantages to be gained from intra-industry trade. Chapter seven analyses the effect of tariff levels on intra-industry trade in South Africa. Weak support was found for the height of tariffs and intra-industry trade in South Africa. Given the reduction of tariff lines in terms of the GATT requirement, it is anticipated that levels of intra-industry trade in South Africa will increase and there is much to gain in terms of welfare than inter industry trade. / Thesis (M.Com.)-University of Durban-Westville, 2001.

Thesis (Ph. D.)--West Virginia University, 2006. / Title from document title page. Document formatted into pages; contains viii, 126 p. Includes abstract. Includes bibliographical references.

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Multilateral trade negotiations within the World Trade Organization have reached a stalemate but there are new trade agreements being currently negotiated, either on bilateral or multinational basis. This thesis deals with two current major trade initiatives, the Trans-Pacific Partnership between the United States and eleven Pacific countries and the Transatlantic Trade and Investment Partnership which includes the United States and the European Union. The thesis uses a comparative analysis to assess economic as well as geopolitical implications of the two trade agreements for the United States. The most apparent geopolitical aspect is the effort of the United States to write the rules of trade for the 21st century before China does so. In regards to economic implications, the thesis works with a concept of intra-industry trade and based on it assesses the possible economic effects on the United States economy, especially in regards to productivity and transactional costs on labor market. Both of the agreements have many critics and their future is not clear. This thesis argues that in certain economic and geopolitical aspects, the Transatlantic Trade and Investment Partnership is more beneficial and strategic for the United States.