DETERMINANTS OF COMMODITY COMPOSITION OF UNITED-STATES TRADE - DISCRIMINANT-ANALYSIS APPROACH

Using trade and industry data disaggregated to the four-digit S.I.C. level, the paper analyzes various hypotheses related to directions of U.S. international trade. The study concludes that capital intensity, skill intensity, and, to a lesser degree, economies of scale and industry structure are important determinants of trade patterns. Tariffs appear usually to be established against foreign industries that threaten domestic ones, but there exists limited evidence that tariffs can reverse expected directions of trade. © 1978, Academy of International Business.