intra-industry specialization

intra-industry specialization

a situation where different firms specialize in particular products within the same industry (see SPECIALIZATION). For example, in the textile industry, one firm may specialize in the production of expensive mohair suits, another in cheap casual wear. Specialization enables firms both to exploit ECONOMIES OF SCALE in production, thereby lowering supply costs, and to accommodate consumers’ demands for greater product variety. See INTRA-INDUSTRY TRADE.
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The study has used the Relative Trade Advantage (RTA) and GrubelLloyd (GL) indexes to measure the pattern of inter-industry and intra-industry specialization between Lithuania and the EU.
2002), "The Theoretical and Procedural Framework for Measuring the Extent of Intra-industry Specialization and trade within the Economic Community of West African State (ECOWAS)" Modelling Measurement and Control, D, Vol.
1986B), "The Determinants of Intra-Industry Specialization in US Trade", Oxford Economics Papers 38, pp.
Our intention is, precisely, to estimate this relationship in European Union, euro zone and evaluate, also, the particular case of Portuguese economy to understand if these countries follow a Krugman-type specialization (inter-industry) or an intra-industry specialization.
Corsetti and Pesenti (2002) show, theoretically, that a monetary union could become optimum ex-post even without an intra-industry specialization process.
Eede, 1982, Inter-Industry versus Intra-Industry Specialization in Exports and Imports, Journal of International Economics, 12: 363-369.
1981, Intra-Industry Specialization and Gains from Trade, Journal of Political Economy, 89: 959-973.
Given this apparent link between horizontal and vertical intra-industry specialization and level of economic development, the aggregate economic effect of higher indicators of intra-industry trade may give rise to entirely different outcomes in terms of buttressing growth and development, depending on the kind of product differentiation individual countries can access.
and imports tend to match each other in industry i, the index approaches zero and signifies, according to Balassa, a high degree of intra-industry specialization.
Second, intra-industry specialization (1 > SI > 2) is not sufficiently expanded in both countries.
Thus GATT concessions typically favor intra-industry specialization.
Early research by Dreze (1961) and Balassa (1965) found evidence of increasing intra-industry specialization in the decade following the customs union formation.

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