UNITED STATES' INTRA-INDUSTRY TRADE

The main objective of this manuscript is to explain the horizontal and vertical intra-industry trade of United States with trade partner of NAFTA, European Union and ASEAN. Identify the determinants of intra-industry trade, horizontal and vertical. Using a 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 theory that, in general, there is no positive statistical association between HIIT and HO variables. Our results also confirm the hypothesis that trade increases if the transportation costs decrease.