Changing trends in North-South trade contexts? An assessment of the intra-industry trade patterns between Germany and Nigeria

Research Paper (undergraduate) , 2016 , 35 Pages , Grade: 1,0

Economics - International Economic Relations

The objective of this paper is to analyse whether and how recent North-South trade relations have been influenced by intra-industry trade patterns. The assumption is that there are continuous patterns of intra-industry trade within and outside the product categories the Northern and the Southern country trade with each other most commonly. However, they only represent a fraction of the otherwise dominating inter-industry type of trade. By analysing a case study of the bilateral trade between Germany and Nigeria, it is found that the nature of intra-industry trade is governed by two central causes: 1) the minor diversification of the Nigerian economy and low levels of trade in non-mineral products and 2) the revitalisation of traditional inter-industry trade dynamics brought about by the gradual move towards a Euro-African Free Trade Area.

Inhaltsverzeichnis (Table of Contents)

• Abstract
• Acknowledgements
• Introduction
• Literature review
  • Patterns conventional trade theory does not explain: Reviewing the analytical gaps of the Heckscher-Ohlin theorem
  • The emergence of alternative theories that incorporate intra-industry trade
    • Intra-industry trade between countries with similarly high per capita incomes: The first concepts of intra-industry trade
    • Intra-industry trade between countries with dissimilar per capita incomes: The different perspectives on North-South intra-industry trade
  • Recent expansions of North-South intra-industry trade models
• Objectives and Methodology
• Case Study: Nigeria's trade with the "North"
  • Nigeria's foreign trade profile
    • Overall trade structure and main trading partners
    • Trade patterns between the EU and Nigeria and the relevance of Germany
    • Recent bilateral intra-industry trade between Germany and Nigeria
  • The history of Euro-African (-Nigerian) trade agreements
• Analysis: North-South intra-industry trade in a less diversified Nigerian economy
  • The persisting dominance of inter-industry trade in Nigeria
  • The modest but continuous development of Nigerian intra-industry trade with the Northern partner
  • The gradual move towards a Euro-African Free Trade Area and consequences for intra-industry trade in Nigeria
• Conclusions
• References

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation aims to analyze the influence of intra-industry trade patterns on recent North-South trade relations. It examines whether there are continuous intra-industry trade patterns within and outside product categories commonly traded between Northern and Southern countries. The study focuses on the bilateral trade between Germany and Nigeria to understand the nature of intra-industry trade and its driving forces.

• Intra-industry trade patterns between North and South
• The role of trade agreements in shaping North-South trade
• Economic diversification and intra-industry trade
• The impact of the Euro-African Free Trade Area on intra-industry trade
• Bilateral trade relations between Germany and Nigeria

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction sets the context for the dissertation, highlighting the importance of understanding intra-industry trade patterns in North-South trade relations. The literature review examines existing trade theories and their limitations in explaining intra-industry trade, particularly between countries with different levels of economic development. It then discusses alternative theories that incorporate intra-industry trade, focusing on models that specifically address North-South trade dynamics. The methodology and objectives section outlines the approach used in the dissertation. It clarifies the research question, the case study chosen (Germany and Nigeria), and the data sources and methods used for analysis. The case study section delves into Nigeria's foreign trade profile, examining its overall trade structure, main trading partners, and trade patterns with the EU and Germany. It explores the historical development of Euro-African trade agreements and their implications for Nigeria's trade with the "North." The analysis section focuses on the nature of intra-industry trade in a less diversified Nigerian economy. It examines the persistent dominance of inter-industry trade, the gradual development of intra-industry trade with Germany, and the potential consequences of the Euro-African Free Trade Area for intra-industry trade in Nigeria.

Schlüsselwörter (Keywords)

The dissertation explores key concepts related to North-South trade, intra-industry trade, economic diversification, trade agreements, and bilateral trade relations between Germany and Nigeria. It analyzes the impact of factors such as trade liberalization, the Euro-African Free Trade Area, and the economic structure of Nigeria on the development of intra-industry trade.

• College: School of Oriental and African Studies, University of London (Department of Economics)
• Grade: 1,0
• Author: Kareem Bayo (Author)
• Publication Year: 2016
• Pages: 35
• Catalog Number: V420452
• ISBN (eBook): 9783668690608
• ISBN (Book): 9783668690615
• Language: English
• Tags: North-South Trade, Intra-Industry Trade, Heckscher Ohlin, Euro-African Trade