LONG-TERM EFFECTS IN INTRA-INDUSTRY TRADE

This study examines the long-term effects of IIT and its components - horizontal (HIIT) and vertical intra-industry trade (VIIT), applied to the study case of the United States. Using the panel data approach, the results show a negative correlation between endowments and intra-industry trade. These results indicate that intra-industry trade occurs more frequently among countries that are similar in terms of factor endowments. The findings support the thesis that there is no positive statistical association between HIIT and HO (Heckscher-Ohlin) variables. Our results also confirm the hypothesis that trade increases if transportation costs decrease.