Published online by Cambridge University Press: 21 July 2025
This chapter examines the relationship between intra-industry trade and trade policy outcomes. Through a cross-national time-series analysis of trade liberalization in developed economies, the chapter shows that industries with higher IIT enjoy lower tariff levels, controlling for leading alternative explanations from the literature. This tests the hypothesis that intra-industry trade is less politically controversial and easier to liberalize than classic, endowments-based trade. However, this chapter also shows that IIT is associated with higher non-tariff measures, a new and significant finding, which is discussed as it pertains to the book's arguments about intra-industry trade’s winners and losers.
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