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School of Economics and Management
TECHNICAL UNIVERSITY OF LISBON
Department of Economics
Carlos Pestana Barros Nicolas Peypoch
Horácio Faustino
A Comparative Analysis of Productivity Change in Italian and
Portuguese Airports
Intra-Industry Trade and Revealed Comparative
Advantage: An Inverted-U Relationship
WP 03/2008/DE/SOCIUS
WP 006/2007/DE
_________________________________________________________
_________________________________________________________
WORKING PAPERS
ISSN Nº 0874-4548
Intra-Industry Trade and Revealed Comparative Advantage: An Inverted-U
Relationship
Horácio C. Faustino
ISEG, Technical University of Lisbon, Portugal and SOCIUS- Research Centre in
Economic Sociology and the Sociology of Organizations
Abstract: This paper investigates the relationship between all types of intra-industry
trade (IIT) and comparative advantage. The paper finds strong evidence of an
inverted-U relationship.The results also suggest that relative autarky costs is a
common determinant for any type of IIT, which contradicts the prediction made by
theory for separating the determinants of horizontal and vertical IIT.
Key words: intra-industry trade, horizontal intra-industry trade, vertical intra-industry
trade, comparative advantage.
JEL Subject Code: F1, C0, C2.
Correspondence:
Horácio Faustino
Instituto Superior de Economia e Gestão
Rua Miguel Lúpi, 20
1249-078 Lisboa
T: (+351) 213925902; Fax: (00351)213966407
E-mail: faustino@iseg.utl.pt
http://www.iseg.utl.pt/~faustino
I. I
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