Intra-Industry Trade in Services

Abstract

Hitherto, all empirical studies and analyses of intra-industry trade have been confined to trade in goods. The only discussion of intra-industry trade in a service industry, to our knowledge, are those of the transportation services by Kierzkowski (1989) and the international telephone industry by Tang (1999). Yet, for the purpose of analysis of trade flows and their effects on the allocation of resources and the welfare of national residents, there is no reason to separate trade in goods from trade in services. In principle, intra-industry trade should cover both goods and services. In practice, the two trade flows have been separated because the Standard International Trade Classification ..