An investigation into the level of intra-industry trade between Canada and the United States, 1968-80 /

Trade in similar products or intra-industry trade results from scale economies and consumer preferences, rather than from conventional forces of comparative advantage. This paper attempts to quantify the importance of intra-industry exchange between Canada and the United States. The analysis deals primarily with measurement, but an attempt to identify the determinants of the phenomenon is also made.The results suggest that intra-industry trade represents a significant and increasing share of Canada's trade with the United States. Although part of this can be explained by idiosyncratic causes, the importance of two-way trade within manufacturing requires additional explanation