Figure 4.1 Intra-industry trade: Grubel-Lloyd index for different income groups
Grubel-Lloyd index for different income groups across time
0.40
0.35
0.30
1962
1975
1990
2006
0.25
0.20
0.15
0.10
0.05
0.00
lower income
lower middle income
upper middle income
high income
Source: based on data from Bruehlhart (2009); countries are classified according to the World Bank’s income
groups; index per country is 5-digit weighted average Grubel-Lloyd index; average per group
Figure 4.2 Increasing returns to scale and perfect and imperfect competition,
demand and costs
Demand and costs
average costs
price, mc, ac, mr
10
demand
G
H
5
F
I
B
C
D
marginal costs
E
A
marginal revenue
0
0
5
quantity
10
Figure 4.3 A trading equilibrium: monopoly versus duopoly, demand and costs
Demand and costs
average costs
10
price, mc, ac, mr
demand
J
5
I
4
D
K
E
C
L
1
B
3
2
G
F
marginal costs
H
A
initial marginal revenue
mr foreign
0
0
5
quantity
10
Figure 4.4 Intra-industry trade as a result of transportation costs
national
border
Foreign country
Foreign firm
Home sales
in Foreign
Foreign sales
in Home
Home firm
Home country
Figure 4.5 The varieties approach of monopolistic competition
varieties in A
1
3
2
5
4
2n-3
6
2n-1
2n-2
varieties in B
2n
Figure 4.6 Monopolistic competition, demand and costs
Demand and costs
average costs
price, mc, ac, mr
10
marginal costs
C
D
F
5
I
B
C
demand
D
marginal revenue
0
0
A
5
quantity
10
Figure 4.7 Monopolistic competition and foreign trade pressure, demand and
costs
Demand and costs
average costs
10.00
price, mc, ac, mr
marginal costs
C
D
C'
D'
F
5.00
pre-trade mr
post-trade
demand
B'
B
pre-trade
demand
0.00
0
A
A'
5
post-trade mr
quantity
10
Figure 4.8 Export orientation of US manufacturing firms, 2002
Export orientation of US manufacturing firms, 2002
Electrical Equipment Appliance
Computer and Electronic Product
Chemical Manufacturing
Machinery Manufacturing
Primary Metal Manufacturing
Transportation Equipment
Plastics and Rubber Products
Textile Mills
Paper Manufacturing
Leather and Allied Product
Beverage and Tobacco Product
Petroleum and Coal Products
Fabricated Metal Product
Textile Product Mills
Food Manufacturing
Nonmetallic Mineral Product
Wood Product Manufacturing
Apparel Manufacturing
Furniture and Related Product
Printing and Related Support
Miscellaneous Manufacturing
Average for US
manufacturing
0
5
10
15
20
25
percent of firms that export
Source: van Marrewijk (2012), based on Bernard et al. (2007, Table 2).
30
35
40
Figure 4.9 Distribution by number of products and export destinations; USA,
2000
a. Share of exporting firms
b. Share of export value
92.2
100
80
60
40.4
40
11.9
20
3
0
4
5+
2
# countries
3
1
4
5+
80
60
40
20
3
0
2
1
Share of export value
Share of exporting firms
100
# products
4
5+
2
1
2
1
3
# countries
Source: van Marrewijk (2012), based on data from Bernard et al. (2007, Table 4).
4
5+
# products
Figure 4.10 Simultaneous exporting and importing; US manufacturing, 1997
US manufacturing; exporting and importing per sector
70
diagonal
percent of firms that import
60
50
Leather and
Allied Product
Computer and
Electronic Product
40
regression line
30
20
Aggregate Manufacturing average
10
Printing and Related Support
0
0
10
20
30
40
50
60
percent of firms that export
Source: van Marrewijk (2012, based on data from Bernard et al. (2007, Table 7).
70
Figure 4.11 Firm heterogeneity, prices, and profits
price,
mc
mc, mr
p3
E3
c3
(p3-c3)q3
demand
p2
(p2-c2)q2
p1
c2
E2
(p2-c2)q2
(p1-c1)q1
E1
c1
(p1-c1)q1
mr
q3
q2
q1
quantity
profit
Figure 4.12 Firm heterogeneity and trade
price
mc
c3
demand before trade
c4
demand
after trade
firms exit
firms make
lower profits
c5
firms
make
higher
profits
quantity
profit
after
trade
profit
before
trade
profit
Figure 4.13 Productivity and firm type in Latin America, 2006
density
National
Exporting
National
Domestic
Foreign
Domestic
Foreign
Exporting
0
normalized labor productivity
Source: Chang and van Marrewijk (2013).
1