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Empirical intra-industry trade: what we know and what we need to know

Empirical intra-industry trade has a history that began in the mid-1960s. As with most empirical exercises, it has been wrought with criticism and defenses that have molded the work that is done on intra-industry trade today. This paper brings together the various measures and econometric studies on intra-industry trade. A complete review of the literature is beyond the scope of this paper, but it highlights the general trends and common features in measurement and econometric studies, as well as the advancements that have taken place over the development of this literature.