An agenda-setting contribution to the field of intra-industry trade. P.J. Lloyd and Hyun-Hoon Lee have assembled an international cast of contributors to offer a selection of models examining the nature of intra-industry trade in several new areas of trade theory, in addition to empirical studies and analysis of much new data in trade patterns. This volume provides an authoritative new treatment of the theory, measurement and testing of the subject of intra-industry trade.

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MARY AMITI Departments of Economics, University of Melbourne DANIEL M. BERNHOFEN Department of Economics, Clark University, USA MARIUS BRÜLHART University of Lausanne, Switzerland KAROLINA EKHOLM Stockholm School of Economics, Sweden LIONEL FONTAGNÉ Centre d'Etudes Prospectives et d'Informations Internationales (CEPII), Paris MICHAEL FREUDENBERG Directorate for Science, Technology and Industry (DSTI), OECD, Paris KIICHIRO FUKASAKU OECD Development Centre, Paris DAVID GREENAWAY Leverhulme Centre for Research on Globalization and Economic Policy, University of Nottingham, UK HERBERT GRUBEL Fraser Institute, Vancouver, B.C. Canada RONALD W. JONES Department of Economics, University of Rochester, USA HENRYK KIERZKOWSKI Graduate Institute of International Studies, Geneva, Switzerland FUKUNARI KIMURA Keio University, Japan GREGORY LEONARD The Brattle Group, Washington DC, USA JAMES R. MARKUSEN Department of Economics, University of Colorado, Boulder, USA KEITH E. MASKUS Department of Economics, University of Colorado, Boulder, USA CHRIS MILNER Leverhulme Centre for Research on Globalization and Economic Policy, University of Nottingham, UK NICOLAS SCHMITT Department of Economics, Simon Fraser University, Canada TONY VENABLES London School of Economics, UK ZHIHAO YU Leverhulme Centre for Research on Globalization and Economic Policy, University of Nottingham, UK

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List of Tables List of Figures Acknowledgements Notes on the Contributors Introduction; P.J.Lloyd & H.H.Lee PART I: DEVELOPMENT OF INTRA-INDUSTRY THEORY AND MEASUREMENT Controversies Concerning Intra-Industry Trade; P.J.Lloyd PART II: MODELS OF INTRA-INDUSTRY TRADE Horizontal Intra-Industry Trade and the Growth of International Trade; N.Schmitt & Z.Yu Intra-Industry Trade in Homogeneous Products; D.M.Bernhofen Fragmentation and Intra-Industry Trade; R.W.Jones, H.Kierzkowski & G.Leonard The Geography of Intra-Industry Trade; M.Amiti & A.J.Venables PART III: EMPIRICAL STUDIES AND POLICY ISSUES OF INTRA-INDUSTRY TRADE Marginal Intra-Industry Trade: Towards a Measure of Non-Disruptive Trade Expansion; M.Brülhart Long-term Trends in Intra-Industry Trade; L.Fontagné & M.Freudenberg Intra-Industry Trade in Services; H.H.Lee & P.J.Lloyd Intra-Industry Trade and the C-H-O model: Evidence and Labour Market Adjustments; D.Greenaway & C.Milner PART III: INTRA-INDUSTRY TRADE, AFFILIATE PRODUCTION AND FDI A Unified Approach to Intra-Industry Trade and Direct Foreign Investment; J.R.Markusen & K.E.Maskus Factor Endowments and Intra-Industry Affiliate Production by Multinational Enterprises; K.Ekholm Globalization and Intra-Firm Trade: Further Evidence; K.Fukasaku & F.Kimura Intra-Industry Trade in Assets; H.Grubel Index