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Intra-industry Trade, Reconsidered: The Role of Technology Transfer and Foreign Direct Investment

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  • Toshihiro Okubo

Abstract

This paper investigates novel determinants of intra-industry trade (IIT) of late 1990s Japanese trade. Our empirical analysis shows that IIT is increased not only by the similarity of GDP and factor endowment but also by technology transfer via Japanese FDI. In particular, the current high proportion of Japanese IIT with Asian countries can be explained by technology transfer (licensing between headquarters and overseas affiliates) via FDI. Copyright 2007 The Author Journal compilation Blackwell Publishing Ltd. 2007 .

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 30 (2007)
Issue (Month): 12 (December)
Pages: 1855-1876

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Handle: RePEc:bla:worlde:v:30:y:2007:i:12:p:1855-1876

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Cited by:
  1. Helble, Matthias & Okubo, Toshihiro, 2008. "Heterogeneous quality firms and trade costs," Policy Research Working Paper Series 4550, The World Bank.
  2. Ito, Tadashi & Okubo, Toshihiro, 2012. "New aspects of intra-industry trade in EU countries," IDE Discussion Papers, Institute of Developing Economies, Japan External Trade Organization(JETRO) 361, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. Toshihiro Okubo, 2009. "Firm heterogeneity and Ricardian comparative advantage within and across sectors," Economic Theory, Springer, Springer, vol. 38(3), pages 533-559, March.

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