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Measurement, Technological Capability, and Intra-Industry Trade: Evidence from the EU

Choudhary, A, Temple, P and Zhao, L Measurement, Technological Capability, and Intra-Industry Trade: Evidence from the EU .

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In this paper we develop models of intra-industry trade in which the technological infrastructure associated with measurement activity plays a role in determining the ability of firms to differentiate their products, making them more marketable, and hence promoting intra-industry trade. We observe that public support for the measurement infrastructure is an important element of public support for industry, while publicly available technical standards provide a significant means by which firms make use of this infrastructure. As an empirical test for the importance of the measurement infrastructure, we consider bi-lateral intra-industry trade flows between economies in the EU and find that both a measure of the cross industry importance of the measurement infrastructure – as proxied by standards - as well as the degree of investment in the ability to measure – as proxied by the use of instruments – are important correlates of intraindustry trade. The econometric analysis suggests that differences in national measurement infrastructures continue to play an important role in determining EU trade flows.

Item Type: Other
Divisions : Surrey research (other units)
Authors :
Choudhary, A
Zhao, L
Uncontrolled Keywords : F12, F14, F15, L1, L60., Intra-industry trade, technology, product differentiation, manufacturing
Depositing User : Symplectic Elements
Date Deposited : 16 May 2017 15:14
Last Modified : 23 Jan 2020 10:27

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