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Intra-industry trade, fragmentation and export margins: An empirical examination of sub-regional international trade

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  • Yoshida, Yushi

Abstract

This study contributes to the existing empirical investigation of international trade by providing new evidence of intra-industry trade using sub-regions within a nation. We calculate the Grubel–Lloyd intra-industry trade index for 41 Japanese regions with Korea during the period from 1988 to 2006. In sub-regional intra-industry trade regression models, we introduce extensive and intensive margins of prefecture exports as new explanatory variables. We find that a rise in sub-regional intra-industry trade is driven by the introduction of a new variety of exports, while intra-industry trade is discouraged by an increase in the trade value of products that are already exported.

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  • Yoshida, Yushi, 2013. "Intra-industry trade, fragmentation and export margins: An empirical examination of sub-regional international trade," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 125-138.
    • Handle: RePEc:eee:ecofin:v:24:y:2013:i:c:p:125-138
    DOI: 10.1016/j.najef.2012.07.003
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    9. Xia, X.H. & Hu, Y. & Chen, G.Q. & Alsaedi, A. & Hayat, T. & Wu, X.D., 2015. "Vertical specialization, global trade and energy consumption for an urban economy: A value added export perspective for Beijing," Ecological Modelling, Elsevier, vol. 318(C), pages 49-58.
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    More about this item

    Keywords

    Export variety; Fragmentation; Intra-industry trade; Regional trade; Vertical specialization;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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