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New Aspects of Intra-industry Trade in EU Countries

Discussion Papers

No.361

by ITO Tadashi, OKUBO Toshihiro
August 2012

ABSTRACT

Using the HS eight-digit product level trade data of EU countries for the period 1988 – 2010, we analyse Intra-industry trade within EU countries as well as with Eastern European countries and with China. We find the Eastern European countries’ rise up the quality ladder, and by contrast the substantially lower prices of China’s exports to EU countries vis-à-vis China’s imports from them. The contrast between EU trade with the Eastern European countries and with China is present even in very recent years.


Keywords: EU, Intra-industry trade, Horizontal and Vertical Product Differentiation, Quality, Unit price gap , China
JEL classification: F14

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