Original Research

Intra-industry trade: a methodology to test the automobile industry in South Africa

Maylene Damoense, André C Jordaan
South African Journal of Economic and Management Sciences | Vol 10, No 1 | a542 | DOI: https://doi.org/10.4102/sajems.v10i1.542 | © 2013 Maylene Damoense, André C Jordaan | This work is licensed under CC Attribution 4.0
Submitted: 21 February 2013 | Published: 21 February 2013

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Maylene Damoense, Monash South Africa, South Africa
André C Jordaan,

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Abstract

This paper provides a study of the theory and empirical evidence of intra-industry trade (IIT) and relates it specifically to South Africa’s automobile industry. The automobile industry in South Africa is a key sector within the national economy and has experienced increased trade and foreign investment in recent years, and thus represents an important case study of IIT. In view of this, the paper proposes a methodology that may be used in future to assess the pattern and determinants of IIT between South Africa and its main trading partners in the automobile industry.

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