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.
Table of Contents
Abstract
Acknowledgements
Abstract
1. Introduction
2. Literature review
2.1. Patterns conventional trade theory does not explain: Reviewing the analytical gaps of the Heckscher-Ohlin theorem
2.2. 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
2.3. Recent expansions of North-South intra-industry trade models
3. Objectives and Methodology
4. Case Study: Nigeria’s trade with the “North”
4.1. 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
4.2. The history of Euro–African (–Nigerian) trade agreements
5. Analysis: North-South intra-industry trade in a less diversified Nigerian economy
5.1. The persisting dominance of inter-industry trade in Nigeria
5.2. The modest but continuous development of Nigerian intra-industry trade with the Northern partner
5.3. The gradual move towards a Euro-African Free Trade Area and consequences for intra-industry trade in Nigeria
6. Conclusions
7. References
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