Factors influencing bilateral intra-industry trade in the auto industry: the case of South Africa
AbstractThis study investigates factors influencing bilateral intra-industry trade (IIT) between South Africa and main trading partners in the auto industry, crucial to managers and policy-makers within this industry. The econometric results of the gravity model of IIT are statistically and economically significant in the context of the fixed effects method of estimation. Thus, the econometric investigation reveals that IIT is positively influenced by difference in economic size, trade openness and foreign direct investment, while it is negatively affected by geographical distance, economies of scale and automotive assistance. The findings of this study propose advancing trade liberalisation and deregulation of the South African auto industry to enhance IIT levels.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Economics and Business Research.
Volume (Year): 4 (2012)
Issue (Month): 1/2 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID==310
gravity models; automobile industry; South Africa; bilateral trade; trading partners; managers; policy makers; econometrics; econometric investigations; economic size; trade openness; foreign direct investment; FDI; geographical distance; economies of scale; automotive assistance; trade liberalisation; trade deregulation; economics; business research; intra-industry trade.;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.
- Fukao, Kyoji & Ishido, Hikari & Ito, Keiko, 2003.
"Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia,"
Discussion Paper Series
a434, Institute of Economic Research, Hitotsubashi University.
- Fukao, Kyoji & Ishido, Hikari & Ito, Keiko, 2003. "Vertical intra-industry trade and foreign direct investment in East Asia," Journal of the Japanese and International Economies, Elsevier, vol. 17(4), pages 468-506, December.
- Kyoji Fukao & Hikari Ishido & Keiko Ito, 2003. "Vertical Intra-Industry Trade and Foreign Direct Investment in East Asia," Discussion papers 03001, Research Institute of Economy, Trade and Industry (RIETI).
- Kishor Sharma, 2004. "Horizontal and vertical intra-industry trade in Australian manufacturing: does trade liberalization have any impact?," Applied Economics, Taylor and Francis Journals, vol. 36(15), pages 1723-1730.
- Robert C. Feenstra & Gordon H. Hanson, 1995.
"Foreign Direct Investment and Relative Wages: Evidence from Mexico's Maquiladoras,"
NBER Working Papers
5122, National Bureau of Economic Research, Inc.
- Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
- Kandogan, Yener, 2003. "Intra-industry trade of transition countries: trends and determinants," Emerging Markets Review, Elsevier, vol. 4(3), pages 273-286, September.
- Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
- Marius Brülhart, 1994. "Marginal intra-industry trade: Measurement and relevance for the pattern of industrial adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 600-613, September.
- Peter Egger, .
"A Note on the Proper Econometric Specification of the Gravity Equation,"
WIFO Working Papers
- Egger, Peter, 2000. "A note on the proper econometric specification of the gravity equation," Economics Letters, Elsevier, vol. 66(1), pages 25-31, January.
- Xiaoling Hu & Yue Ma, 1999. "International intra-industry trade of China," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 82-101, March.
- Don Clark & Denise Stanley, 2003.
"Determinants of Intraindustry Trade Between the United States and Industrial Nations,"
International Economic Journal,
Korean International Economic Association, vol. 17(3), pages 1-18.
- Don Clark & Denise Stanley, 2003. "Determinants Of Intraindustry Trade Between The United States And Industrial Nations," International Economic Journal, Korean International Economic Association, vol. 17(3), pages 1-17.
- Jones, Ronald W. & Kierzkowski, Henryk, 2005. "International fragmentation and the new economic geography," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 1-10, March.
- Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002.
"Unit root tests in panel data: asymptotic and finite-sample properties,"
Journal of Econometrics,
Elsevier, vol. 108(1), pages 1-24, May.
- Tom Doan, . "LEVINLIN: RATS procedure to perform Levin-Lin-Chu test for unit roots in panel data," Statistical Software Components RTS00242, Boston College Department of Economics.
- Hausman, Jerry A, 1978.
"Specification Tests in Econometrics,"
Econometric Society, vol. 46(6), pages 1251-71, November.
- Horácio Faustino & Nuno Leitão, 2007. "Intra-Industry Trade: A Static and Dynamic Panel Data Analysis," International Advances in Economic Research, Springer, vol. 13(3), pages 313-333, August.
- Sylvie MONTOUT & Jean-Louis MUCCHIELLI & Soledad ZIGNAGO, 2002.
"Regionalization And Intra-Industry Trade. An Analysis Of Automobile Industry Trade In Nafta,"
Region et Developpement,
Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 16, pages 137-159.
- Montout, Sylvie & Mucchielli, Jean-Louis & Zignago, Soledad, 2001. "Horizontal and vertical intra-industry trade of Nafta and Mercosur: The case of the automobile industry," MPRA Paper 43928, University Library of Munich, Germany.
- Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
- Kemal Türkcan & Aysegul Ates, 2011. "Vertical Intra‐industry Trade and Fragmentation: An Empirical Examination of the US Auto‐parts Industry," The World Economy, Wiley Blackwell, vol. 34(1), pages 154-172, 01.
- Joe Stone & Hyun-Hoon Lee, 1995. "Determinants of intra-industry trade: A longitudinal, cross-country analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 131(1), pages 67-85, March.
- Michael Thorpe & Zhaoyang Zhang, 2005. "Study of the Measurement and Determinants of Intra-industry Trade in East Asia ," Asian Economic Journal, East Asian Economic Association, vol. 19(2), pages 231-247, 06.
- Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December.
- Lionel Fontagné & Michaël Freudenberg, 1997. "Intra-Industry Trade: Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center.
- Zhaoyong Zhang & LI Chuan, 2006. "Country-specific factors and the pattern of intra-industry trade in China's manufacturing," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1137-1149.
- Yener Kandogan, 2003. "Intra-industry Trade of Transition Countries: Trends and Determinants," William Davidson Institute Working Papers Series 2003-566, William Davidson Institute at the University of Michigan.
- Bela Balassa & Luc Bauwens, 1988. "Inter-industry and intra-industry specialization in manufactured goods," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 124(1), pages 1-13, March.
- C. Veeramani, 2009. "Trade barriers, multinational involvement and intra-industry trade: panel data evidence from India," Applied Economics, Taylor and Francis Journals, vol. 41(20), pages 2541-2553.
- Greenaway, David & Hine, Robert C & Milner, Chris, 1995. "Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(433), pages 1505-18, November.
- Shun-Chiao Chang, 2009. "Horizontal and Vertical Intra-industry Trade and Firm's Investment Strategies: Evidence from the IT Industry in the Asian, EU and US Markets," Global Economic Review, Taylor and Francis Journals, vol. 38(1), pages 63-76.
- Nuno Carlos Leitão & Horácio C. Faustino & Yushi Yoshida, 2010. "Fragmentation, Vertical Intra-Industry Trade, and Automobile components," Economics Bulletin, AccessEcon, vol. 30(2), pages 1006-1015.
- Nasser Al-Mawali, 2005. "Country-Specific Determinants Of Vertical And Horizontal Intra-Industry Trade Of South Africa: An Empirical Investigation," South African Journal of Economics, Economic Society of South Africa, vol. 73(3), pages 406-425, 09.
- Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
- Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 62-81, March.
- Balassa, Bela & Bauwens, Luc, 1987. "Intra-industry Specialisation in a Multi-country and Multi-industry Framework," Economic Journal, Royal Economic Society, vol. 97(388), pages 923-39, December.
- Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.