Advanced Search
MyIDEAS: Login

Horizontal and Vertical Intra-industry Trade and Firm's Investment Strategies: Evidence from the IT Industry in the Asian, EU and US Markets


Author Info

  • Shun-Chiao Chang
Registered author(s):


    This study investigates the features and determinants of the horizontal and vertical intra-industry trade (HIIT and VIIT, respectively) and firms' investment strategies of the information technology (IT) industry in the Asian, European Union (EU) and US markets from 1996 to 2005. The respective evolutions of the HIIT and VIIT of the IT industry indicate that HIIT has often dominated VIIT in the IT industry, which is obviously contrary to the present pattern of world trade. The empirical results further reveal the principal pattern of the IT firms' foreign direct investment strategies as facilitating the market rather than seeking efficiency in the host regions. The effect of revealed comparative advantage in relation to VIIT and HIIT demonstrates that vertical specialization is significant between Asia and the EU whereas horizontal specialization plays a key role between Asia and the US. The Asian financial crisis significantly promoted VIIT in regard to Asian IT firms in the US market. Finally, regional trade associations such as the EU and Association of South East Asian Nations (ASEAN) have strengthened the vertical specialization of EU IT firms in Asian countries.

    Download Info

    If 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.
    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    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 Info

    Article provided by Taylor & Francis Journals in its journal Global Economic Review.

    Volume (Year): 38 (2009)
    Issue (Month): 1 ()
    Pages: 63-76

    as in new window
    Handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:63-76

    Contact details of provider:
    Web page:

    Order Information:

    Related research

    Keywords: IT industry; horizontal intra-industry trade; vertical intra-industry trade; foreign direct investment; regional trade associations;


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Maylene Y. Damoense-Azevedo & André C. Jordaan, 2012. "Factors influencing bilateral intra-industry trade in the auto industry: the case of South Africa," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 4(1/2), pages 63-82.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:taf:glecrv:v:38:y:2009:i:1:p:63-76. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    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.