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Abstract
In this study, the intra-industry trade (IIT) is analyzed within the framework of the Chamberlin-Heckscher-Ohlin model. The empirical analysis is based on cross-country and cross-industry data of 1977. The results support that product differentiation and scale economies play important roles in the explanation of IIT. On the basis of the empirical findings of the cross-country model, this study further raises several important questions on both trade policy formulation and the future study of IIT. [420]