Oren Cass argues the thought of comparative benefit driving commerce is outdated. I comply with a sure extent, however he doesn’t clarify why. I’d say intra-industry commerce (IIT) – a staple of educational analysis for the reason that Nineteen Eighties – is one motive, however that doesn’t present justification for cover. The truth is, his ignorance of IIT suggests his case for protectionism is ill-founded.
How a lot intra-industry commerce is there? Some current estimates from Czarny, Elżbieta & Folfas, Pawel & Szarek-Piaskowska, Aleksandra. (2024). Intra-industry commerce: a portrait of world patterns throughout 2000-2022.
Supply: Czarny et al. (2024).
The US share has gone down a bit since 2018, maybe as a result of export controls (though that’s conjecture on my half). Even then, IIT accounts for over 1 / 4 of complete US commerce.
See additionally Richard Baldwin‘s recounting of IIT over time.
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