How Intra-Industry Trade Is Related to Income Difference and Foreign Direct Investment in East Asia
Abstract
This paper investigates how intra-industry trade (IIT) is linked to cross-country income difference and foreign direct investment (FDI). We distinguish IIT as either horizontally or vertically differentiated, using bilateral exports and imports data for Japan and the remaining East Asian countries at the SITC five-digit level over 1990-2000. Our results show that the income difference has a negative relationship with the share of horizontal IIT, but a positive relationship with vertical IIT, and that cross-country FDI has a positive relationship with share of horizontal IIT and a negative relationship with share of vertical IIT. Copyright (c) 2006 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.Download Info
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Bibliographic Info
Article provided by MIT Press in its journal Asian Economic Papers.
Volume (Year): 4 (2005)
Issue (Month): 3 (October)
Pages: 143-156
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Web page: http://mitpress.mit.edu/journals/
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Fukunari Kimura & Ayako Obashi, 2011.
"Production Networks in East Asia : What We Know So Far,"
Microeconomics Working Papers
23216, East Asian Bureau of Economic Research.
- Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Trade Working Papers 23216, East Asian Bureau of Economic Research.
- Kimura, Fukunari & Obashi, Ayako, 2011. "Production Networks in East Asia: What We Know So Far," ADBI Working Papers 320, Asian Development Bank Institute.
- Sawyer, William C. & Sprinkle, Richard L. & Tochkov, Kiril, 2010. "Patterns and determinants of intra-industry trade in Asia," Journal of Asian Economics, Elsevier, vol. 21(5), pages 485-493, October.
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